By Trend

The cost of Azerbaijan’s government bonds increased by more than three times, Azer Mursagulov, director of the Agency for Managing Public Debt and Financial Obligations under the Azerbaijani Finance Ministry, said, Trend reports.

According to Mursagulov, after the adoption by the Ministry of Finance of Azerbaijan of a new strategy in 2018, the cost of government securities in the local market amounted to 780 million manat ($458.8 million).

"However, today this figure has more than tripled and amounts to 2.6 billion manat ($1.5 billion). In 2018, the Ministry of Finance could place government bonds at auction for one-two years, whilst today this period can reach up to seven years," he said. "This indicates the development of the domestic market, long-term financial inclusion, and also creates a balance of financial reserves of institutions."

The agency’s head noted that according to the current world practice, the period of placement of bonds is extended by the state, and corporate sectors are quickly involved in this process.

"The placement of bonds on stock exchanges in Azerbaijan has grown tenfold since 2018, and this indicates the development of the financial market, the growth of financial turnover and the interest of financial institutions in participating in government projects and programs aimed at developing the local financial sector," added Mursagulov.