BAKU, Azerbaijan, May 21. Based on the results of the first quarter of 2025, there have been no significant changes in the lending standards for both domestic mortgage loans and those provided through the Mortgage and Credit Guarantee Fund (MCGF), Trend reports via the Central Bank of Azerbaijan (CBA).
CBA noted that banks do not anticipate any changes in lending standards for overall mortgage loans, including those issued via the MCGF, in the coming quarter.
"According to responses from surveyed banks, demand for total mortgage loans continued to rise in the first quarter of 2025. The increase in demand was primarily observed in mortgages provided through the MCGF. This growth was driven by the allocation of limits to authorized banks by the MCGF at the beginning of the year to continue issuing mortgages, including concessional loans.
Banks expect the rising demand trend for MCGF-backed mortgages to continue, while demand for domestic mortgage loans is projected to remain stable.
The survey also revealed that banks’ lending standards for mortgage loans have been influenced by factors such as financing costs, inflation, and expectations for the real estate market, which have exerted tightening pressure. Overall, the results suggest that the pace of growth in banks’ mortgage portfolios is expected to persist into the next quarter," the CBA report reads.
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