AKBA: Microfinance Firms Issued 65 Million Manat in Bonds Over the Past Year
Orkhan Baghirov, chairman of the Azerbaijan Capital Markets Association (AKBA), said microfinance organizations issued only 65 million manats worth of bonds on the exchange over the past year, despite the market's potential being roughly 24 times larger.
Speaking at a conference organized by the Azerbaijan Microfinance Association (AMFA), Baghirov noted that insurance companies place part of their roughly 900 million manat in funds to earn interest income. According to Central Bank data, about 60% of insurance reserves are used for this purpose. He said that with the current 65 million manat bond market, the sector's annual income amounts to only 2–4.6 million manats, affecting overall portfolio returns by a maximum of 0.3%. Baghirov stressed that the issue lies not in bond returns but in the small size of the market. The overall microfinance portfolio stands at 1.6 billion manats, of which about 20%, or roughly 320 million manats, could potentially be financed through bonds. He added that even if bond issuance volume increased fourfold, insurance companies would still have sufficient capacity to purchase these securities.
More news
Employee rights during layoffs in Azerbaijan: notice periods and severance pay
Economist Emin Sattarov explains Azerbaijan's Labor Code rules on notice periods and severance payments for employees facing staff cuts.
Azerbaijan sets 2027 subsistence minimum at 314 manats
Azerbaijan's draft 2027 state budget sets the nationwide subsistence minimum at 314 manats, up 14 manats from 2026.
Azerbaijan's State-Guaranteed Debt Falls 24% in Nine Months
As of October 1, Azerbaijan's state-guaranteed debt stood at 7.886 billion manats (5.7% of GDP), down 24% from the start of the year.