Printer Friendly

Azerbaijan predicts significant growth in bond market.

ByTrend

In 2019, the Azerbaijani bond market will grow by at least 50 percent, said Intigam Safaraliyev, deputy director of the AzFinance investment company, Trend reports referring to the company.

According to Safaraliyev, people will invest more actively in bonds. At the same time, small and medium businesses will issue more bonds.

As for the stock market, then, as the deputy director noted, this market will be activated via payment of dividends to 3 or 4 large companies.

Speaking of the general economic situation in Azerbaijan, Safaraliyev pointed out that the World Bank expects the country's GDP growth at 3.6 percent. Such a forecast, according to him, calls on entrepreneurs to be active. At the same time, innovative young entrepreneurs will become more competitive compared to conservatives, and those not making any risks will be faced with the greatest risks.

The representative of AzFinance also believes that there will be no devaluation and the rate of the manat will remain stable.

"The central bank is implementing a policy of lowering interest rates as business is getting more activate in the country. The growth of state budget spending creates opportunities for companies to increase sales, which in turn will play a multiplier role and support economic growth," he said.

At the same time, Safaraliyev believes that companies that have made their businesses more transparent will be in profit.

"There have been major changes in the tax and customs systems. A stimulating tax system has been created. Many entrepreneurs have made their work more transparent or are working towards it. The reason is that costs of a transparent business, unlike others, will be lower, and this will allow them to be more competitive. Transparency allows for strengthening supervision, simplifying procedures, coming up with more accurate solutions, conducting market research and making a more efficient use of time. This, in turn, improves business efficiency. Companies which will not ensure the transparency of their activities will waste time with fines and litigations thus, this will result in a drop in their effectiveness."

Safaraliyev went on to say that a transparent business will be able to attract cheaper funds, which will allow implementing more projects and will stimulate economic growth.

As for the influence of the economic situation in other countries on Azerbaijan, then, he believes, the recessions that other countries will go through, will not be able to influence Azerbaijan.

"Uncertainty in foreign markets will cause many local entrepreneurs to return their money to the country. Entrepreneurs who, one might say, have not earned anything in US dollars, will switch back to the manat and invest in manat deposits and bonds," Safaraliyev said.

COPYRIGHT 2019 Knowledge Bylanes
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2019 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Azer News (Baku, Azerbaijan)
Geographic Code:9AZER
Date:Mar 5, 2019
Words:496
Previous Article:Iran, Azerbaijan may sign financial agreements.
Next Article:Bulgaria recognizes Azerbaijan as main driving force behind SGC implementation.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters