English | دری

Afghanistan plans to set up secondary bond market

in Afghan Business

Afghanistan plans to set up secondary bond market

Afghanistan plans to set up a secondary bond market in order to allow for existing bonds to expand their trade beyond commercial banks, who are the only investors at the moment.

In an exclusive interview with the Reuters, Afghan central bank governor Khalil Sediq said Afghanistan was not yet ready to establish a stock exchange, even though some private investors have been pressing for it.

“We have to start with a bond market rather than stocks, It’s easier. A stock market needs a relatively secure and safe environment,” Reuters quotes Mr. Sediq.

The Afghan central bank, Da Afghanistan Bank (DAB), has issued bonds with maturity of 7 and 28 days, six months and one year to the tune of USD 520mn. The rate for one-year bond is about 6.8-7%, Sediq said.

He added that Afghanistan also intended to sell Islamic bonds, known as sukuk, perhaps over the coming year.

With regards to the stock market, Sediq believes the preliminary work for it would be taken by 2018.

“If we can start the logistical work, preparation of rules, regulations, study the market, see who is eligible to have their stock in the market, what parameters should be there for any company or bank,” he said.

“We should have all these studies ready, then, hopefully, it’s a question of how soon we can have relative peace. Without that, no way, but if everything goes well, I believe by about 2017, 2018 preliminary steps will be taken.”

Related Articles

Arabic firm to improve Kabul municipality services

The Kabul municipality signed four contracts on Monday with an Arabic firm, Khateeb and Alami, to improve services of the

Afghan Ministry of Energy and Water approaches World Bank to fund Shahtoot Dam

Ministry of Water and Energy officials announced that the designing process of Shahtoot Dam is completed and the constructing process

UAE pledges support to Afghanistan in areas of transit trade and education

The United Arab Emirates (UAE) Ambassador to Kabul, Yousuf Saif Seba Al Ali, met with President Ashraf Ghani today in

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*