Monday April 22 2024

Azerbaijan eyes introducing tax benefits to stock market

12 November 2022 11:19 (UTC+04:00)
Azerbaijan eyes introducing tax benefits to stock market

By Ayya Lmahamad

Azerbaijan’s Central Bank holds discussion with state structures on the application of tax benefits on the stock market, bank’s Deputy Director of Capital Markets Policy and Supervision Department Samir Ismayilov said.

He made the remarks during a videoconference meeting dedicated to the Issuer’s Day, organized by the Baku Stock Exchange, Azernews reports per Trend.

“Once the work on this is completed, the Central Bank will be able to see a positive development in the stock market. In the future, banks will be able to participate more actively in the capital market,” he said.

Bonds issue basis of state support

Samir Ismayilov also stated that private companies in Azerbaijan will be able to raise funds by issuing bonds on the basis of state support.

Noting that the bank is taking steps to attract companies to the capital market, he recalled that the mechanism for guaranteeing corporate bonds was approved in August 2022.

“Companies wishing to receive financing from the capital market will be able to issue bonds on the basis of state security. For this purpose, relevant laws are currently being developed, and by January 2023, the laws for guaranteeing bonds will be approved,” he said.

Special platform to finance companies from capital market

“The Central Bank is creating a special platform for more flexible financing of companies from the capital market,” he said.

He noted that the platform is planned to be launched no later than the end of November.

“Companies wishing to receive financing through securities will be able to apply online to the Central Bank, the Baku Stock Exchange, or the National Depository Center,” he said.

Saying that the capital market in Azerbaijan creates an opportunity to raise funds only for the financial sector, Samir Ismayilov stated that the real sector has limited participation in this market.

“If the participation of other companies in the capital market increases, the market can work more efficiently,” he said.


Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad

Follow us on Twitter @AzerNewsAz

Latest See more