16:03 - 19.04.2023
April 19, Fineko/abc.az. A few days ago, information was published that companies can also buy notes from the Central Bank.
ABC.AZ reports that the Central Bank has made public the conditions and limit requirements for the companies for the auctions of the notes in question. The new rule will be applied at the auction of notes on April 19-20.
On April 19-20, CBA’s banknotes totaling AZN 120 million will be auctioned at the Baku Stock Exchange. The banknotes will be sold in four lots. These are 28-day, 3-month, 6-month and 9-month banknotes of AZN 30 million each.
For the first time, the following companies will be able to participate in the upcoming banknote auction along with banks. According to the rules, these should be non-oil and gas and non-state companies, as well as companies that do not operate in the field of finance and insurance. The organizational and legal form of companies should have commercial purpose (JSC, CJSC, LLC, cooperatives, etc).
As for the terms of the auction, in some sense, the opportunities created for companies to buy notes are superior even to banks.
So, during the auction, the following restrictions on the type and volume of orders will be applied:
- banks can submit 1 competitive order. The amount of the placed order should not exceed 10% of the volume put up for auction.
- 1 competitive and 1 non-competitive order may be submitted by other participants, except banks. The amount of the tender order must not exceed 8% of the volume put up for auction.
The amount of a non-competitive order issued by another participant, with the exception of banks, should not exceed 20% of the amount of its competitive order. During the auction, there is a limit on the total amount of non-competitive orders in the amount of 20% of the volume put up for auction.
The auction will be considered invalid if at the time of the auction the number of participants was less than 5. Settlements on concluded transactions will be carried out in the T+0 mode.
