BAKU, Azerbaijan, August 11. The requirements related to the terms of the loan provided by banks for obtaining residential space in Azerbaijan have changed, Trend reports via the Central Bank of Azerbaijan (CBA).
Governor of the Central Bank of the Republic of Azerbaijan Taleh Kazimov approved the Laws on prudential standards and requirements in connection with credit risks, including large credit risks. The initial payment for the purchase of residential space in a mortgage by an individual who does not own residential space will be 15 percent.
For persons who own residential areas, the loan-to-value ratio can be up to 70 percent, which in turn means that the initial payment when these persons receive a loan from a bank for the purchase of a residential area should be at least 30 percent.
These changes and requirements do not apply to loans received through the Mortgage and Credit Guarantee Fund of the Republic of Azerbaijan.