Around 20 people officially addressed to the partner banks of the Azerbaijan Mortgage Found (AMF), while the total number of applicants turned to the banks with different inquiries comprised 600, Trend reports quoting Faig Mammadov, Chief Executive of the Mortgage Found, as saying at a workshop on development of mortgage crediting in Azerbaijan. For example, in neighbor countries only 7 or 10 from 100 applicants receive such opportunity. Mammadov hopes that the issue of credits will be accelerated that depends on quality of presenting documents.
At present the public budget is the single source of AMFs financing and foreign borrowing is not expected soon. The Fund will refinance at the expense of the funds, returned on main debt and paid percentages. Other internal instrument may be issue of mortgage securities.
Besides, the Fund applied an innovation. 4 close relatives can establish a group to receive a mortgage credit and settlement will be carried out from average monthly income of relatives at calculation of sum of possible credit. Besides salary of borrower, it should be taken into consideration income from the rent of his property, annual bonuses, perspectives of salary increase and deposits at calculation of average monthly income.
Touching upon legalization of documents on credit, Mammadov stressed that at the first stage it took long time, but during the issue of credit no documents are additionally needed, except the insurance contract signing on the annual base.
The head of the Fund also clarified the issue of premature return of credit resources to partner-banks. According to Mammadov, it was impossible under the current conditions, as the Azerbaijani legislation did not envisage additional fines for similar case. Nevertheless, in such cases borrower is due to turn to the bank beforehand in order to carry out calculation anew. In world practice in case of premature return of credit borrower pays additional money, as system risks of banks increase due to issue of securities under mortgage credits. In the future in case of appearance of similar tendency monitoring will be conducted in the country and additional payment will be applied for premature return of credit, Mammadov stressed.
Maximal term of mortgage credit at the expense of AMF makes up 15 years. According to Mammadov, the interest rate is 12 %, but some banks propose credit with less interest rate for competitiveness.