Azerbaijan, Baku /corr. Trend I.Khalilova / The Government of Azerbaijan began discussions with regards to the proposals of the National Bank of Azerbaijan (NBA) on improvement of the mortgage crediting due to the separation of the social mortgage from the mortgage issued on a commercial base, the Chairman of the NBA Executive Board, Rufat Aslanli, said. The proposals envisage attracting foreign capitals through purchasing mortgage securities, credit resources from the foreign investors, funds from the State budget for the social mortgage.
"It needs to devise a mechanism to ensure sustainable mortgage crediting system," Aslanli said. Currently the foreign investors take a large interest to purchase the portfolio from the Azerbaijan Mortgage Fund (AMF). According to him, there are such possibilities and the current law does not exclude this probability.
"The essence of the proposals includes re-establishing the mortgage crediting within a short time, which will not be ceased even irrespective of the crisis in the work mortgage market," Aslanli said. According to him, Azerbaijan has its own specification of forming the mortgage crediting and this mechanism is forwarded towards improving the living situation of the poor layer of population. However, the mortgage markets in Europe and the USA are only financial instrument and mainly they use the investment portfolio of the investors.
The key task for Azerbaijan is to attract free resources from the world investment market to ensure sustainability and keep privileges for the social mortgage. Currently talks are being held with the foreign investors and the NBA hopes that the Government will re-establish the crediting within a short period after the talks.
In addition, the NBA appealed to the Government with proposals to allocate funds from the 2008 State budget for the social mortgage.
Since the beginning of the activity of the AMF in 2005, the mortgage credits have been financed only through the State budget and AZN 46mln have been allocated for this goal.