Azer Mursagulov: Deposit auctions of Azerbaijan's Finance Ministry support banking sector liquidity

Deposit auctions held by Azerbaijan's Finance Ministry contribute to the efficient use of budget funds and the formation of additional income for the state, Director of the Agency for Management of Public Debt and Financial Obligations under Azerbaijan's Finance Ministry Azer Mursagulov said during the Financial and Investment Forum held in Baku, Report informs.

He noted that since the beginning of this year, the Ministry of Finance has introduced a number of innovations in the financial market.

"Since the beginning of the year, we have begun to place temporarily free state budget funds in the form of deposits through auctions among banks. Three such auctions have already been held. This mechanism, on the one hand, ensures the efficient use of budget resources and brings additional income, and on the other hand, maintains the liquidity of the banking sector, which generally contributes to the development of the country's financial system," Mursagulov said.

He also emphasized that in order to increase investor interest in government bonds, strengthen trust and increase transparency, since the beginning of the year the Ministry of Finance has regularly published detailed information on government securities on its official website, including the structure and content of government debt, its maturity dates and currency composition.

"We are confident that such openness will help investors make more balanced and informed decisions when entering the market," Mursagulov added.