By Trend
In 2019, the Azerbaijani bond market will grow by at least 50
percent, said Intigam Safaraliyev, deputy director of the AzFinance
investment company, Trend reports referring to the company.
According to Safaraliyev, people will invest more actively in
bonds. At the same time, small and medium businesses will issue
more bonds.
As for the stock market, then, as the deputy director noted,
this market will be activated via payment of dividends to 3 or 4
large companies.
Speaking of the general economic situation in Azerbaijan,
Safaraliyev pointed out that the World Bank expects the country's
GDP growth at 3.6 percent. Such a forecast, according to him, calls
on entrepreneurs to be active. At the same time, innovative young
entrepreneurs will become more competitive compared to
conservatives, and those not making any risks will be faced with
the greatest risks.
The representative of AzFinance also believes that there will be
no devaluation and the rate of the manat will remain stable.
“The central bank is implementing a policy of lowering interest
rates as business is getting more activate in the country. The
growth of state budget spending creates opportunities for companies
to increase sales, which in turn will play a multiplier role and
support economic growth,” he said.
At the same time, Safaraliyev believes that companies that have
made their businesses more transparent will be in profit.
"There have been major changes in the tax and customs systems. A
stimulating tax system has been created. Many entrepreneurs have
made their work more transparent or are working towards it. The
reason is that costs of a transparent business, unlike others, will
be lower, and this will allow them to be more competitive.
Transparency allows for strengthening supervision, simplifying
procedures, coming up with more accurate solutions, conducting
market research and making a more efficient use of time. This, in
turn, improves business efficiency. Companies which will not ensure
the transparency of their activities will waste time with fines and
litigations – thus, this will result in a drop in their
effectiveness."
Safaraliyev went on to say that a transparent business will be
able to attract cheaper funds, which will allow implementing more
projects and will stimulate economic growth.
As for the influence of the economic situation in other
countries on Azerbaijan, then, he believes, the recessions that
other countries will go through, will not be able to influence
Azerbaijan.
"Uncertainty in foreign markets will cause many local
entrepreneurs to return their money to the country. Entrepreneurs
who, one might say, have not earned anything in US dollars, will
switch back to the manat and invest in manat deposits and bonds,"
Safaraliyev said.
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