Head of Mortgage Fund: Azerbaijan to Involve Social Mortgage in 2007
A package of proposals on simplifying and improving the mortgage credit system, including the social mortgage, will be submitted to the Presidential Administration of the Country.
Faig Mammadov, Executive Director of the Azerbaijan Mortgage Fund (AMF) told Trend that all recommendations of the President of the Country towards the development of the mortgage crediting have been reflected in the proposals. The Board of the National Bank of the Country has already approved some improvements and simplifications, but the package with proposals is being considered more widely by the Government of the Country.
We have seen the dynamics of growth in the mortgage crediting, said Mr. Mammadov. To date, the number of credits granted by AMF has reached 200. The volume of the credits granted by the Fund is expected to be brought up to 5 mln. AZN till the end of the year.
The Head of AMF considers that this process will accelerate with the use of lax mortgage, and the number of credits to be granted is expected to exceed 1,000. The results of the first year on involving the mortgage crediting shows that involving lax credits within the social mortgage will bring massive borrowings. At the same time, the most discussed issues today are: elimination of shortcomings in the system and beyond the mortgage crediting will also further to extend the population possibilities to use this financial instrument.
The social mortgage will spread among young families and families of military men. There are a lot of young families who want to improve their housing conditions; therefore the selection criteria will be set. Presenting social mortgage on the basis of corresponding priorities (the number of family members, the income of the family) is one of the proposals. The advantage should be given to young families with less income. The place of residence could be as an advantage as well, since the priority for the country is to develop the regions of the country.
According to the proposals, the term on grating mortgage credits is expected to be extended from the existing 15 years to 30. The maximal amount of the credit could also double from the existing 30,000 AZN.