The “Mechanism of guaranteeing obligations of bond issuers (entrepreneurs)” was introduced in the Mortgage and Credit Guarantee Fund (IKTZ).
Publika.az The Foundation reports that a meeting dedicated to the presentation of this mechanism was held.
According to information, at the meeting attended by representatives of the Central Bank of Azerbaijan, National Depository Center, Baku Stock Exchange, investment companies operating in the country, and “Azerbaijan Stock Market Participants Association”, a presentation on the implementation of the new mechanism was shown, and the participants’ questions were answered.
It was stated that the Fund’s guarantee of the performance of the corporate bond obligations of the issuing companies working in the non-oil sector increases the liquidity and attractiveness of the corporate bonds issued by them and is expressed in manat, and expands the opportunities for entrepreneurs to access alternative financial resources. It was emphasized that the implementation of the mechanism is also important in terms of supporting the development of the securities market and sharing the risks of investors.
It should be noted that new instruments in the field of state support for entrepreneurship by the Fund are provided by the Decree of the President of the Republic of Azerbaijan dated January 26, 2023 on amending Decree No. 1691 of the President of the Republic of Azerbaijan dated November 29, 2017 “On ensuring the operation of the Mortgage and Credit Guarantee Fund of the Republic of Azerbaijan is carried out according to Decree No. 2002 dated
In accordance with the decree, in order to increase the range of support tools for entrepreneurs, new rules have been prepared for the implementation of mechanisms for providing guarantees by the Fund to entrepreneurs who are issuers of securities and portfolio guarantees to authorized banks.
