Baku, Azerbaijan, Oct. 14
By Azad Hasanli - Trend:
The Azerbaijani government plans to increase the expenses for social mortgage financing by 25 percent - to 50 million AZN in 2015, the presentation of Azerbaijan's state and consolidated budget projects for next year, released by the finance ministry, says.
Around 40 million AZN were allocated from the state budget-2014 for these purposes.
Taking into account the social mortgage funding envisaged for 2015, a total amount of funds accumulated in the mortgage fund will reach 266 million AZN.
Along with budgetary financing, the mortgage fund places bonds. The funds from their sale are directed to the issuance of loans as part of conventional mortgage.
Around 15,393 mortgage loans totaling 612.37 million AZN have been issued through the AMF so far.
The maximum amount of a conventional mortgage through the AMF is 50,000 AZN at a rate of 8 percent and a maturity of 25 years. The amount of a social mortgage is 50,000 AZN at an annual rate of 4 percent and the term of 30 years. The initial payment under the social mortgage is 15 percent, while for a conventional loans - 20 percent.
Mortgage terms are as follows: loans must be issued in national currency, AZN, and only to the citizens of Azerbaijan, the subject of the mortgage can only be an apartment or private house, the amount of the mortgage should not exceed 80 percent of the market value of the property, the monthly payment for a loan must not exceed 70 percent of monthly income of the borrower, the presence of an agreement on life insurance and other conditions.
Preferable conditions are granted to members of families of war victims, families of National Heroes of Azerbaijan, internally displaced persons, civil servants with at least a three years' experience, candidates and doctors of science, persons making special contributions to sport, as well as the military with at least a three-year service term. Each family having the right to such a mortgage loan can use the opportunity only once.
Today the authorized banks of the AMF are 28 banks [the country has 44 banks]. The participants of the mortgage market are also 21 insurance companies [27 in total] and 15 appraisal organizations.
The official exchange rate is 0,7843 AZN/USD Oct. 14.