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Azerbaijan Mortgage and Credit Guarantee Fund's upgrade to boost economic growth

Economy Materials 2 May 2018 14:54 (UTC +04:00)
The changes made to the activity of the Azerbaijan Mortgage and Credit Guarantee Fund will contribute to acceleration of the country's economic growth
Azerbaijan Mortgage and Credit Guarantee Fund's upgrade to boost economic growth

Baku, Azerbaijan, May 2

By Ilkin Shafiyev – Trend:

The changes made to the activity of the Azerbaijan Mortgage and Credit Guarantee Fund will contribute to acceleration of the country's economic growth, Azerbaijani MP, doctor of economic sciences Rufat Guliyev told Trend.

According to Guliyev, this will affect the construction sector, which is an indicator of the economic growth of any country.

"The construction business is highly capital-intensive, and though not permanent, but a lot of workplaces opened in this sector. That is the socalled Laffer-effect occurs. Reduction in the tax burden leads to an increase in the tax transfers to the state budget," he said.

Guliyev said that this also results in the economic growth, reduction in the unemployment level and increase in the living standard of the population.

"Funds flow to the country's economy, then these funds are redistributed in the consumer market, which, in turn, leads to its development. The rise and increase in consumption in both markets boosts more employment, and production growth, "Guliyev said.

Today, the issues related to lending, including mortgage loans, are very relevant for the Azerbaijani economy, economist, doctor of economic sciences Elshad Mammadov told Trend.

Mammadov assessed the changes made to the activity of the Azerbaijan Mortgage and Credit Guarantee Fund as positive.

"These measures are aimed at developing the lending system, including mortgage lending. I think that these measures should be continued, and as a whole, be reflected in softening of the monetary policy, particularly, in the area of lending to the mortgage segment, . This is also a social segment, from the point of view of providing the population with affordable housing, because housing construction is one of drivers for the investment development, and in general economic activity," Mammadov said.

Azerbaijan's President Ilham Aliyev signed a decree on May 1 additional measures to modernize the activity of the Azerbaijan Mortgage and Credit Guarantee Fund.

The document was signed with the aim of improving population's provision with housing, increasing opportunities to get mortgage loans, and minimizing the risks of mortgage and credit and guarantee mechanisms.

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