CBA: Legal framework for new financial instruments to be established in Azerbaijan

The Central Bank of Azerbaijan (CBA) plans to establish a legal framework for new financial instruments as part of the "2024-2026 Financial Sector Development Strategy," Azernews reports, citing CBA's response to a query from Report.

"According to the strategy, a series of measures are planned to promote the capital market. In particular, the review and improvement of the 'Securities Market' law, expanding investors' access to the market, creating a legal framework for new financial instruments, and providing incentives for access to capital markets are planned," the Central Bank's response states.

It is further noted that there are plans to review the regulatory framework related to issuance and to establish a legal framework for the protection of investors' rights.

"These changes are aimed at expanding the scope of the market and increasing the diversity of financial instruments, which should contribute to the development of a modern capital market offering more favorable financing opportunities for the real sector of the economy," the CBA notes.

It should be recalled that the "2024-2026 Financial Sector Development Strategy" was approved by the CBA Board on January 26 of this year. As a result of the strategy’s implementation, the share of capital markets in the country's non-oil GDP is expected to increase from the current 10% to 14%, the volume of public investments in capital markets is projected to grow from 150 million manats to 1 billion manats, and an effective supervisory framework is expected to be established.