Azerbaijan, Baku, Oct. 6 / Trend /
On Oct. 8, the Baku Stock Exchange will place next interest, book-entry and registered bonds of the Azerbaijan Mortgage Fund under the Central Bank in the amount of 5 million manat, BSE reported.
According to the prospectus, placement will be conducted by public subscription. Bonds will be presented at the auction at the current price.
Date of maturity is May 10, 2016. If the demand exceeds supply, all applications will be provided in a proportional manner. The Central Bank of Azerbaijan will play a role of the primary organizer of placement.
Placement of the AMF bonds was launched on June 16, 2009. So far, the auction has presented bonds worth $33 million manat, and the entire amount of bonds has been fully placed. The total bond issue is 55 million manat.
In connection with the launch of mortgage loans, 18 banks authorized by the AMF were approved.
Conditions of the mortgage lending are as the following: loans must be issues in the national currency with manats and only to Azerbaijani citizens, and an object of the mortgage can only be an apartment or private houses, volume of the mortgage lending must not exceed 85 percent of the market price, monthly payment for a loan must not exceed 70 percent of debtor's monthly income, as well as presence of an agreement on life insurance and others.
Preferable conditions are granted to members of families of war victims, families of national heroes, internally displaced persons, civil servants with at least a three-year experience, candidates PhD and PhD, persons making special contributions to sport, as well as militaries with at least a three-year service term.
Each family having the right to a lax mortgage loan can use this chance only for one time.
The 2009 public budget has allocated 14 million manat to finance social mortgage lending.
The 2005-2008 Azerbaijani public budget envisaged 94 million manats to fund mortgages through the AMF, and over 70 million manat of this volume has been allocated.
On Oct. 6, the official exchange rate is 0.8033 manat to $1.
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