Azerbaijan sees increase in mortgage lending in 11M2021

Economy Materials 7 December 2021 10:55 (UTC +04:00)
Azerbaijan sees increase in mortgage lending in 11M2021

BAKU, Azerbaijan, Dec. 7

By Chingiz Safarli -Trend:

More than 4,880 Azerbaijani citizens were given mortgage loans within 11 months of this year in the amount of 325 million manat ($191.2 million), which is the highest figure since 2006 (the foundation of the Fund began its activities), Trend reports with reference to the Fund.

According to the information, the Fund continues to finance mortgage loans as part of the social policy implemented by the state in the field of providing the population with housing in accordance with the goals set in 2021.

Thus, compared to the same period in 2020, the number of loans issued increased by 44 percent. A slight increase in this indicator is expected by the end of the year.

The total amount of mortgage loans issued at the expense of the Fund amounts to 1.969 billion manat ($1.1 billion). The number of families who have improved their housing situation through these loans amounts to over 36,000. About 34 percent of loans were issued to privileged categories of citizens, 69 percent - to youth and young families.

In addition, this year, through preferential mortgage loans, support for the sale of apartments, which are at the disposal of the State Housing Construction Agency of the Republic of Azerbaijan, has been continued.

In 2021, mortgage loans in the amount of 44.6 million manat ($26.2 million) were issued for the purchase of 1,063 affordable apartments. Since 2018, 118.1 million manat ($69.5 million) have been allocated to finance subsidized housing for 2,725 citizens, and mortgage loans in the amount of 1.3 million manat ($765,043) have been allocated to 38 citizens.

It is noted that favorable terms of mortgage loans and preferential mortgage loans contributed to the high demand for these loans. In just 11 months of 2021, the demand for mortgage loans amounted to more than 1.1 billion manat ($647.3 million). In order to meet demand, the Fund is implementing possible measures within the framework of appropriate resources.

It is also noted that the observed significant growth in the volume of mortgage loans did not affect the quality of the Fund's existing loan portfolio.

Based on strict standards and adequate assessment, the Fund has formed a fairly reliable loan portfolio. At the moment, there are no problem loans in the portfolio, which is considered the best indicator in the country's financial and banking system and in international practice.