International Financial Corporation Forms Task Group to Improve Institutional and Legal Basis of Mortgages
Azerbaijan, Baku Trend corr. I.Khalilova / The International Financial Corporation (IFC) on the development of housing finance in Central Asia and Azerbaijan has formed a Task Group for improving institutional and juridical basis of mortgage loan projects, Azar Aliyev, the financial analyst of the project said. The Task Group unites 12 banks.
The Task Group held their first meeting.
The IFC is to render technical assistance to the Azerbaijan Mortgage Fund on the introduction of commercial mortgages. The mortgage fund will draw funds from foreign and local markets. IFC's consultant will render assistance to implement the business-project. At present the main directions of cooperation are being considered by the Azerbaijani Mortgage Fund.
Alongside the introduction of commercial mortgage financing the state will continue to render social mortgage assistance. Social mortgage financing will be implemented on a right basis, but commercial mortgages must be conducted on a market basis.
The table of mortgage loans after the latest improvements:
|Primary conditions||Average conditions||Total||Social mortgage||Difference|
|Length of Loan||15 year||15 year||25 year||30 year||2|
|Sum of loan in AZN||30,000||30,000||50,000||35,000||-2|
The project is being financed by IFC together with the State Secretariat for Economic Affairs - SECO. The project includes Central Asia and Azerbaijan, but SECO render assistance only to Azerbaijan.