Azerbaijan postpones introduction of ruble mortgage

Economy Materials 28 December 2015 13:53 (UTC +04:00)

Baku, Azerbaijan, Dec. 28

By Anvar Mammadov - Trend:

The introduction of the ruble mortgage in Azerbaijan has been postponed until 2016, Tural Veliyev, director of the bank's retail business development department and member of its board of directors, told Trend Dec.28.

He said that the main unresolved issue in this area is the question of interest rates.

"Banks of our group get preferential rates on mortgage lending on the Russian market, that is, they are subsidized by state," he said. "We once again appealed to the leadership of the group so that they would include us in the list of banks and allocate resources to us."

Veliyev went on to add that besides the correction of manat rate, other issues are also pending.

The Central Bank of Azerbaijan switched to the floating rate of the national currency (manat) from Dec.21, 2015. As a result, the exchange rate of the US dollar and euro to manat rose by 47.6 percent and 47.9 percent and stood at 1.55 manats and 1.685 manats, respectively on the mentioned day.

"After another change of the manat rate, our partners took a short break to re-evaluate the cost of one square meter of housing," said Veliyev. "In addition, we took the time to think in order to find more resources available. As you know, the International Bank of Azerbaijan with the support of state also launched a new program of mortgage lending. So we want to do everything so that our product would be competitive and no less interesting for population."

Bank VTB (Azerbaijan) plans to introduce ruble mortgage in the country that will be provided for a period of 10 years with an initial contribution in the amount of 20 percent.

"Bank VTB (Azerbaijan)" is a subsidiary of "VTB Bank". The shareholders of "VTB Bank (Azerbaijan)" are "VTB Bank" and "AtaHolding". "Bank VTB (Azerbaijan)" renders the services to the corporate business, small business and private clients. Today the bank is represented by 14 subsidiaries and the Customer Service Office under the main service.

As of late September, the registered capital of the bank amounted to 50.82 million manats, total capital - 53.07 million manats. The bank's assets amounted to 369.96 million manats, the loan portfolio - 347 million manats and the deposit portfolio - 60.7 million manats for the third quarter.