PremiumReview of monetary sector in Azerbaijan (January-February 2014)

In February 2015 the Central Bank of Azerbaijan (CBA) stressed further decrease in its foreign exchange reserves, which began in December 2014.

According to the CBA, as of March 1, the volume of foreign exchange reserves totaled $ 11 billion compared to $ 12.7 billion as of February 1 and $13.7 billion as of January 1, 2015. For comparison, the CBA currency reserves reached $ 15 billion as of December 1 and $15.19 billion (an absolute record) as of August 1, 2014.

A decrease in the CBA foreign exchange reserves amounted to $1.676 billion (-13.2 percent) in February 2015. The decrease hit $ 2.25 billion (-20 percent) in 2015. The CBA currency reserves have reduced by nearly $4 billion (-26.6 percent) since December 2014.

CBA has passed from determining of the dual-currency rate to targeting of the value of a currency basket since February 16. That is, it refused from manat pegging to the US dollar. The official exchange rate of the dollar versus the manat has been set at 1.05 manat since February 21, which is 33.86 percent more than the rate set before the weakening of the rate [till February 16].

This decision was taken to create additional incentives for branching the economy, strengthening the international competitiveness and export potential, ensuring the balance of payments and strategic stability of the country's international solvency, the statement said.

Adjusting of the manat rate is also aimed at neutralizing the negative impact of significant depreciation of the national currencies of most countries, which are our foreign trade partners, on the competitiveness of the national economy. CBA will continue participating in the foreign exchange market within the established corridor.

The Azerbaijan Deposit Insurance Fund of Physical Entities has increased the maximum interest rate on insured deposits from 9 to 12 percent since February 24. The maximum amount of insurance coverage for deposits in Azerbaijan is 30,000 manat.

Currency market and AZN rate

The CBA board has introduced the dual-currency basket since February 16. The bank has devaluated the national currency to the US dollar by 0.23 percent for four days. As of February 16, the rate was set 0.7848 and from December 18, 2014 to February 15, 2015 it hit 0.7844 manat.

As of February 20, 2015, the official exchange rate was set at 0.7862 manat per US dollar versus 0.7857 as of February 19.

As of February 23, 2015, the exchange rate was set at 1.05 manat per US dollar versus 0.7862 as of February 20. As a result, manat rate reduced by 33.86 percent versus US dollar during a week.

The official exchange rate has been set at 1.0501 manat since February 24, 2015 compared to 1.05 manat per US dollar, which has been observed since February 21. As a result, since the moment of manat pegging to the US dollar and introducing of the dual-currency basket (February 16), the Azerbaijani currency reduced by 33.87 percent compared to a base unit. On February 25, the rate was 1.0502 manat versus 1.0501 manat as of February 24 and 1.05 manat per US dollar, which has been observed since February 21.

On February 27, CBA allowed the exchange rate of the national currency to grow steadily for the first time after the devaluation on February 21. So, the official exchange rate as of February 27, 2015 was set at 1.0498 manat compared to 1.0501 manat as of February 26. As a result, since the moment of manat pegging to the US dollar and introducing the dual-currency basket (February 16), the Azerbaijani currency reduced by 33.8 percent compared to a base unit.

Since the moment of manat pegging to the US dollar and introducing of the dual-currency basket (February 16), the Azerbaijani currency also reduced versus the euro.

The single European currency greatly depreciated versus Azerbaijani manat in January. On January 26, the official exchange rate was set at 0.877 manat (less than 88 "cents") for 1 euro. Such euro rate versus Azerbaijani manat has been never observed.

But as of February 23, the euro rate was set at 1.195 manat. The euro rate gradually increased. As of February 24, the rate was set at 1.906 manat, as of February 25 - at the level of 1.1914 manat, as of February 26 - at the level of 1.1942 manat.

As of February 27, CBA allowed the exchange rate of the national currency to grow steadily for the first time after the devaluation versus the US dollar and the euro on Feb. 21. As of February 27, the euro rate was set at 1.1771 manat.

Azerbaijani monetary market

CBA's important objective is to manage the money supply at an adequate macroeconomic and financial stability level, in terms of continuous growth of foreign exchange reserves of the country and increased liquidity of the banking system.

A decrease in the foreign exchange reserves of the country, as well as the CBA decision as of February 16 about holding the exchange rate policy on the basis of the mechanism of the dual currency basket that includes the dollar and the euro, significantly affect the amount of the monetary aggregates in February.

The money supply rate (M2) (cash in circulation (outside banks) and remainders in the domestic currency on accounts of non-financial organizations, financial (excluding credit) organizations and physical entities) decreased by 16.2 percent in February 2015 compared to the previous month and by 15.6 percent compared to the same period of 2014, the CBA's report says.

The money supply rate (M2) amounted to 13.607 billion manat as of February 2015 compared to 16.236 billion manat as of January and 16.125 billion manat as of March 1, 2014.

The amount of cash money supply (M0) decreased by 5.7 percent during a year and amounted to 7.957 billion manat compared to 9.956 billion manat as of early March 2014.

M0 decreased by 14.9 percent in February compared to last month.

As of February 2015, Broad Money Supply (M3) totaled 20.115 billion manat or 4.4 percent more compared to the same period of 2014 (19.273 billion manat) or by 2.2 percent less compared to January 2015.

The transaction money (M1) decreased by 18.2 percent during a year and amounted to 10.108 billion manat compared to 12.351 billion manat as of February 2014. The index reduced by 14 percent compared to the previous month.

Parameters of monetary market, in billion manat:

	volume, as of March 1, 2015
Money mass in extensive understating (М3)	20115,17
Money mass on manat (М2)	13607,00
Cash in manat (М0)	7957,73
Non-cash in manat	5649,27

The expanded monetary base in Azerbaijan totaled 9.736 billion manat as of March 1, 2015 or by 9.5 percent less compared to the previous month.

In annual terms, the monetary base in Azerbaijan decreased by 13.4 percent. For comparison, as of February 2014, this figure was 11.245 billion manat.

As of March 1, 2015, the monetary base in manat amounted to 9.110 billion manat versus 10.551 billion manat in January and 11.136 billion manat as of March 1, 2014.

In the mentioned period, the volume of money in circulation amounted to 8.701 billion manat, while in January this figure was 10.145 billion manat and 10.618 billion manat as of March 1, 2014.

The ratio of the mass of cash in circulation to the monetary base was 89.4 percent as of February 2015, reducing by 4.9 percent compared to the previous months and by 5 percent compared to March 1, 2014.

Bank reserves stood at 1.028 billion manat in February 2015 or 70.12 percent more than in January and by 66.5 percent more than in February 2014 (617.7 million manat).

Azerbaijan's loan market

Azerbaijani banks increased lending to the economy by 32.5 percent in January-February 2015, compared to the same period of 2014, the report said.

The banks issued loans totaling around 20.697 billion manat, including around 12.319 billion manat (60 percent) in national currency and 8.378 billion manat (40 percent) in freely convertible currency as of March 1, 2015, the report said.

This ratio hit 73 and 27 percent in January 2015.

By comparison, the figure hit 15.616 billion manat (around 11.292 billion manat in national currency and 4.324 billion manat in freely convertible currency) as of February 2014.

Of the total portfolio, borrowings and loans worth 1.138 billion manat (5.55 percent) were overdue compared to 831.6 million manat (5.3 percent) as of February 2014.

The statistics of overdue loans does not include similar loans of Aqrarkredit non-banking credit institution. The share of overdue loans has increased by 36.9 percent in a year. The amount of the overdue loans has increased by 16.6 percent since early 2015.

The volume of short-term loans amounted to 4.514 billion manat (including overdue loans worth 442.2 million manat) as of February 2015, compared to 3.421 billion manat (including overdue loans worth 377.2 million manat) as of February 2014. The volume of short-term loans in the economy increased by 31.9 percent in a year.

The volume of long term loans amounted to 16.183 billion manat (including 695.9 million manat worth overdue loans) as of January-February 2015, compared to 12.195 billion manat (including 454.4 million manat worth overdue loans) as of February 2014. The volume of long term loans has increased by 32.7 percent in a year.

The credit portfolio of the state banks in the country hit 7.439 billion manat with the specific weight of 35.9 percent, while private banks issued loans worth around 12.699 billion manat with a specific weight of 61.4 percent.

The remaining 2.7 percent fell to the share of non-bank credit organizations which issued 559.5 million manat, according to the CBA.

Azerbaijani banks increased the consumer lending volume by 32 percent in January-February 2015 compared to the same period of 2014, the report said.

The share of consumer loans in a total volume of the banks' loan investments amounted to 43 percent, or 8.417 billion manat (AZN). For comparison: their share accounted for 40.9 percent, and the amount of issued loans - 6.380 billion manat in January-February 2014.

The trade and services (14.8 percent or 2.971 billion manat) ranked second on the share in the total loan portfolio of banks. The construction and real estate sector (14.6 percent or 2.847 billion manat) ranked third.

Around 11.5 percent of the total volume of lending to the real sector of Azerbaijan was directed to the industry and production. In nominal terms it amounts to 2.248 billion manat.

The share of transport and communication hit 4.3 percent (831.8 million manat), agriculture and processing reached 4.8 percent (936.4 million manat), energy, chemistry, and natural resources - 1.3 percent (269.4 million manat).

The loans given to the population in Azerbaijan's districts totaled 3.403 billion manat as of January-February 2015, or 16.44 percent of the banks' total loan portfolio, the report says.

The figure hit 17.294 billion manat in Baku in January-February. Here the loans in national currency (manat) amounted to 9.822 billion manat.

In January-February 2015, the average interest rate on loans throughout the country was 13.4 percent, while in Baku this index stood at 12.2 percent.

The lending volume in the Absheron Economic district totaled 666.47 million manat at an average rate of 19.9 percent.

In other economic districts the lending index was as follows: Aran - 841.05 million manat at a rate of 23.7 percent, Mountainous Shirvan - 110.6 million manat at a rate of 25.2 percent, Ganja-Gazakh - 750.29 million manat at a rate of 10 percent, Guba-Khachmaz - 289.18 million manat at a rate of 20.7 percent, Lankaran - 307.28 million manat at a rate of 24.3 percent, Shaki-Zagatala - 241.03 million manat at a rate of 21.5 percent, the Upper Karabakh - 59.92 million manat at a rate of 19.5 percent, Kalbajar-Lachin - 8.98 million manat at a rate of 20 percent, Nakhchivan - 127.79 million manat at a rate of 13.3 percent.

Azerbaijani banks increased interest rates on loans in local currency and decreased the rates in foreign currency in February 2015, the report said.

The average rate on bank lending to the economy of Azerbaijan in national currency amounted to 14.15 percent as of late February 2015 compared to 13.71 percent in January and 14.47 percent in February 2014.

The average rate on bank lending in freely convertible currency made up 13.08 percent compared to 14.28 percent in January and 14.32 percent in February 2014.

The average rate on bank lending to legal entities in national currency amounted to 9.78 percent in February compared to 9.74 percent in January and 11.46 percent as of February 2014. The average rate on bank lending to corporate clients in freely convertible currency amounted to 8.89 percent compared to 9.22 percent in January and 10.69 percent in February 2014.

As of February, the average rate on bank lending to physical entities in national currency amounted to 18.65 percent compared to 18.59 percent in January and 18.21 percent in February 2014.

The average rate on bank loans to individual customers in freely convertible currency was 21.75 percent compared to 22.27 percent in January and 20.38 percent in February 2014.

Mortgage lending

The Azerbaijan Mortgage Fund (AMF) under the Azerbaijani Central Bank delivered loans amounting to 14 million AZN in February 2015 or 2.19 percent more than in the same period of 2014, the report said.

The total amount of refinancing the loans delivered by the banks earlier, hit 8.1 million AZN in February 2015, according to the report.

The average amount issued by AMF authorized banks is 40,251 AZN (this figure amounted to 39.578 AZN in February 2014), the average term of loan issue - 279 months (278 months), the average interest rate is 6.77 percent (versus 6.87 percent in 2014), and the average monthly payment is 297.1 AZN (319.3 AZN).

Some 3.8 million manat was transferred from the state budget to the AMF in February 2015.

Currently, the maximum amount of a common mortgage loan through the AMF is 50,000 AZN at a rate of 8 percent with a payback period of 25 years. Terms under the social mortgage are 50,000 AZN at an annual rate of 4 percent with a payback period of 30 years. The initial payment under a social mortgage is 15 percent, whilst a conventional loan is 20 percent.

Conditions of mortgage lending are as follows: Loans must be issued in Azerbaijani AZN and only to Azerbaijani citizens and the mortgage can only be for an apartment or private house.

The volume of mortgage lending must not exceed 80 percent of the market price and the monthly payment must not exceed 70 percent of the debtor's monthly income. It is compulsory to have an agreement on life insurance.

Preferential conditions are granted to family members of war victims, national heroes, internally displaced persons, civil servants with at least a three years' experience, PhDs and those making special contributions to sport as well as to the military with at least a three-year service term. Each family having the right to such a mortgage can only use the opportunity once.

At present, the authorized banks of the Mortgage Fund are 28 banks [some 45 banks operate in the country].

Some 21 insurance companies [their total number is 27] and 15 appraisal organizations are the participants of the mortgage market.

Azerbaijan's banking sector

The economic cycles, seasonal factors and the attitude of investors, dictated by a variety of causes impact on the dynamics of deposits.

As of January-February 2015, the depositary base of Azerbaijani banks increased by 19.6 percent, the report said. It increased by 43 percent compared to the same period of 2014.

As of March 1, 2015, the total amount of bank deposits and deposits of physical and legal entities totaled 18.482 billion manat compared to 12.927 billion manat as of early March 2014, according to the CBA.

Around 6.120 billion manat fell to cash (33.1 percent), 2.258 billion manat were demand deposits, and 3.862 billion manat term deposits. The funds in foreign currency amounted to 12.362 billion manat (66.9 percent), including 2.738 billion manat - demand deposits and 9.624 billion mantas - term deposits.

It should be stressed that since the beginning of 2015, the ratio of deposits in local and foreign currency has changed in favor of the latter. Thus, as of 2014, the deposit funds in manat amounted to 50.1 percent, while 49.9 percent accounted for those in foreign currency.

The deposits of physical entities increased by 20.34 percent, while the volume of legal entities' deposits by 66.5 percent in January-February 2015 compared to the same period of 2014.

As of February 2015, the volume of physical entities' deposits in the banks amounted 7.933 billion manat compared to 6.592 billion manat in early March 2014.

Around 2.988 billion manat (37.7 percent) of the population's funds were placed in the national currency, while 4.945 billion manat in freely convertible currency (62.3 percent), according to the Central Bank.

It should be stressed that the growth of the population's deposits in dollars is connected with the process of sharp devaluation of the manat by almost 34 percent on February 21.

In January 2015, some 60.05 percent of the population's funds were invested in banks in manat, and the rest amount in foreign currency. A tendency of prevailing the population's cash deposits in banks in the national currency over the foreign currency deposits has been observed in Azerbaijan since 2012. So, as of 2014, some 4.422 billion (61.5 percent) of funds were placed in the national currency, 2.766 billion manat - in freely convertible currency.

As of February 2015, the volume of deposits of financial organizations amounted to 6.171 billion manat compared to 3.520 billion manat as of February 2014. The volume of deposits of non-financial organizations totaled 4.378 billion manat compared to 2.815 billion manat as of February 2014.

The total volume of deposits of legal entities totaled 10.549 billion manat compared to 6.335 billion manat as of March 1, 2014.

The deposits of the population testify to the confidence in the banking system. They also play a crucial role as a resource for the banks' normal activity.

At present, there is no outflow of deposits from the banks in Azerbaijan despite the term of the six-year moratorium on exempting the dividends on the population's deposits from paying an income tax expired in late 2014.

The taxation of dividends on deposits in banks operating in Azerbaijan and branches of foreign banks, introduced from 2015, will apply to all deposit agreements with physical entities.

The tax on the depositors' dividends in Azerbaijan will affect the interest accumulated from 2015.

According to the amendments to the Tax Code of Azerbaijan, approved by the Azerbaijani parliament, some interest income up to 500 manat per year, received on a deposit in a bank, has been exempt from an income tax. The tax rate on this income is 10 percent.

A moratorium on the imposition of an income tax on the citizens' income, received on the population's deposits in banks and other credit organizations in Azerbaijan, expired in late 2014.

The moratorium has been in force since 1999.

The population's deposits, attracted to Azerbaijan's banking system from the country's districts (except for Baku), totaled 622.6 million AZN in January-February 2015, or 7.85 percent of the total bank deposits.

The volume of deposits in Baku was 7.310 billion AZN, while some 2.593 billion AZN accounted for the deposits in the national currency.

In this period, the average interest rate throughout the country hit 8 percent and in Baku - 8.1 percent. Thus, Baku is still the leader on such indices as attracting the population's deposits by the banks.

The Absheron economic region (194.14 million AZN at an average rate of 8.5 percent) is in the lead in terms of drawing the deposits of the population in the districts.

During this period, the volume of deposits in the Mountainous Shirvan - 14.2 million AZN at a rate of 6.6 percent, Ganja-Gazakh - 137.9 million AZN at a rate 7.3 percent, Guba-Khachmaz - 43.33 million AZN at a rate of 6.7 percent, Lankaran - 43.47 million AZN - the rate of 6.6 percent, Sheki-Zagatala - 43.2 million AZN - the rate of 6 percent, Upper Karabakh - 18.4 million AZN - 3.8 percent, Kalbajar-Lachin - 2.43 million AZN - 5 percent, Nakhchivan - 25.29 million AZN - the average rate of 4.4 percent, the Aran economic region - 100.17 million AZN - the average rate of 5.6 percent.

The Azerbaijani banks increased interest rates on deposits both in national currency and decreased rates on deposits in foreign currency in February 2015, the report said. The average rate on deposits in manat as of March 1, 2015 made up 8.95 percent compared to 8.82 percent in January and 9.38 percent as of March 1, 2014. The average rate on deposits in foreign currency amounted to 8.73 percent versus 8.93 percent in January and 9.74 percent as of early March 2014.

As of March 1, 2015, the average interest rate on deposits of physical entities in manat made up 9.64 percent, while it was 9.41 percent in January and 9.81 percent as of early March 2014. The average rate on deposits of individual customers in foreign currency amounted to 9.57 percent versus 10.05 percent in January and 10.24 percent as of March 1, 2014. The average rate on deposits of legal entities in manat made up 5.78 percent at the beginning of March 2015 versus 5.66 percent in January and 5.63 percent as of March 1, 2014. The average rate on deposits of corporate clients in foreign currency amounted to 4.34 percent versus 4.36 percent in January and 3.39 percent in early March 2014.

Banks' financial activity

As of early 2015, there are 45 banks in Azerbaijan: 43 commercial banks and 2 state-owned banks. There are 23 banks with foreign capital. The share of foreign capital ranges from 50 to 100 percent in eight of them, while up to 50 percent in 13 banks. There are also two local branches of foreign banks.

As of March 1, 2015, the assets of the Azerbaijani banking sector amounted to 28.63 billion manat (AZN) compared to 20.82 billion manat on the results of January-February 2014, the report said.

The bank assets increased by 37.53 percent during a year, and by 13.7 percent since the beginning of 2015, according to the Central Bank of Azerbaijan. The basis of the assets of the banking sector (67 percent) accounted for loans delivered to the clients in the amount of 19.17 billion manat (34.24 percent growth during a year), other assets (2.22 billion manat with 33.1 percent growth during a year), investments (2.59 billion manat with 51 percent growth during a year).

Funds on correspondent accounts on the results of February 2015 were 2.02 billion manat. Loans and deposits delivered by the banks to the financial sector amounted to 1.298 billion manat (4.5 percent weight and 40.6 percent growth during a year).

The lion share in the structure of liabilities accounts for deposits standing at 12.5 billion manat (43.55 percent) as of March 1, 2015, showing an increase of 33.02 percent compared to the same period of 2014. Loans and deposits from the financial sector amounted to 10.38 billion manat (36.27 percent), increasing by 49.45 percent during a year. The capitalization of the banking sector in February declined by 2.4 percent, amounting to 4.110.9 billion manat. In annual terms, the capital of banks increased by 22.06 percent.

Payment card market

The number of payment cards in Azerbaijan increased by 4 percent during the year and hit 6.041 million units as of February 2015, according to the report.

Some 4.722 million units of the total number of cards were debit cards, in particular, 2.447 million - social cards, 1.441 million - salary cards, 834,000 - other cards. The number of credit cards was 1.319 million units.

The total turnover on payment cards via ATMs and POS-terminals amounted to 1.976 million AZN and the total number of transactions to 13.256 million units in January-February 2015, according to the report.

The number of transactions on debit cards equaled 10.094 million units totaling 1.553 million AZN in January-February 2015.

Of the total number of transactions, around 7.672 million transactions amounting to 1.364 million AZN were implemented on debit cards via ATMs within the country, and around 597,000 transactions amounting to 119 million AZN via POS-terminals.

Some 3.163 million transactions worth of 425 million AZN were made on credit cards in January-February 2015.

As many as 1,054 transactions worth 231 million AZN, of the total number of transactions on credit cards, were implemented via ATMs and there were 1,150 transactions worth of 95 million AZN via POS-terminals.

As of March 1, 2015, around 2,622 ATMs operated in the country of which 1,477 are located in Baku and 1,145 in other cities and regions of the country. Their total number increased by 195 units or 8.03 percent during a year.

The number of POS-terminals amounted to 77,041 units of which 50,387 are installed in Baku and 26,654 units in other cities and regions as of March 1, 2015.

The number of POS-terminals increased by 42,900 units or 2.26 times during the year.

Stock market

The total turnover of transactions on all instruments on the Baku Stock Exchange (BSE) in January-February 2015 stood at 3.824 billion AZN, or by 19.04 percent more compared to the same period of 2014.

The volume of the state securities market hit 14.941 billion AZN (twofold decrease) during the reporting period and the turnover of corporate securities market totaled 512.28 million AZN (a 6.2 times decrease).

The volume of derivatives market amounted to 3.297 billion AZN.

The trading in derivatives ensured the main part of the turnover of the stock market.

The Baku Stock Exchange started to trade derivatives on July 21, 2014.

The margin trading allows investors to buy and sell securities and financial instruments acquired from a broker under special conditions due to the temporary trading limit.

Comparative table on the results of trades on the state and corporate sectors at BSE (Jan. 2015):

Market segments	As of Jan. 31, 2015		As of Jan. 31, 2014 года
	Volume of transactions (AZN)	Number of deals	Volume of transactions (AZN)	Number of deals
State securities market	14 914 881,15	5	30 490 065,27	13
State funds of finance ministry	14 914 881,15	5	5 507 649,79	5
SB (Finance Ministry) - (placement)	0	0	1 007 649,79	2
SB (Finance Ministry) -(secondary market)	14 914 881,15	5	4 500 000	3
Notes (Central Bank) - (placement)	0	0	44 966 321,56	17
Notes (Central Bank) -(secondary market)	0	0	9 997 386,95	2
Stock market	22 001 097,21	806	211 965 822,77	825
Stocks (placement)	20 915 190	10	211 552 850,50	295
Stocks (secondary market)	1 085 907,21	796	412 972,27	530
Market of debt instruments	452 175 136,78	122	270 347 736,88	66
Bonds of Azerbaijan Mortgage Fund (placement)	3 000 000	1	5 000 000	4
Bonds of Azerbaijan Mortgage Fund (secondary market)	372 960 257,39	51	230 675 292,36	34
Other corporate bonds (placement)	10 332 120	6	23 152 610,70	14
Other corporate bonds (secondary market)	65 882 759,39	64	11 519 833,82	14
- including market makers	114 925 886,25	52	33 333 962,12	28
Repo operations	38 104 872,45	28	2 699 835 932,27	202
Repo operations of the central bank	12 852 483,35	12	1 151 930 943,51	86
Other repo operations	25 252 389,10	16	1 547 904 988,76	116
Derivatives market	3 297 115 418,14	14317	0	0
Currency	3 234 736 153,53	12693	0	0
Goods	62 379 264,61	1624	0	0
Total:	3 824 311 405,73	15 278	3 212 639 557,19	1106

Abbreviations:

- SB - state bonds

- SS - state securities

- CB - corporate bonds

- CS- corporate securities

The National Depository Center under the Azerbaijani State Securities Committee registered 497 purchase-sale transactions of shares to the amount of 486.55 million manat at a nominal cost in February 2015.

Last month, the Depository Center registered 84 off-exchange transactions to the amount of 24.9 million manat at a nominal value and 44 transactions on the additional issue of 181.89 million manat at a nominal value.

In annual terms, the trading volume doubled (394 deals worth 230.77 million manat in February 2014). The volume of transactions on the additional issue reduced by 47.4 percent (65 deals worth 123.4 million manat).

The volume of off-exchange transactions increased by 6 times compared to the same period of 2014. For comparison, the National Depository Center registered 53 deals worth 4.1 million manat in February 2014.

In February 2015, the volume of transactions on the purchase and sale of shares registered by the National Depository Center under the Azerbaijani State Securities Committee doubled compared to the same period of February 2014.

Some 438 exchange transactions in the amount of 145 million manat at face value were registered during the reporting period, whereas some 270 deals worth 68.7 million manat were concluded in February 2014.

The Depository Center registered 29 off-exchange transactions in the amount of 1.9 million manat at face value in February 2015, as well as eight transactions on the additional issue worth 2.6 million manat (par value).

The volume of off-exchange transactions decreased by 25.2 percent compared to the same period of February 2014. For comparison, the National Depository Center registered 52 deals worth 2.54 million manat.

In annual terms, the volume of transactions on the additional issue decreased by 54.5 times (210 deals worth 140.55 million manat were concluded in February 2014).

The National Depository Center was established on September 18, 1997. The founder and owner of the center's whole package of shares was the Azerbaijani State Property Committee. After the State Securities Committee was established, the center's shares were transferred to it. In this regard, the National Depository Center was re-established by the State Securities Committee on September 8, 1999 and passed the state registration on September 17, 1999.