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Azerbaijani Micro Finance Bank to Issue Mortgage

Business Materials 1 November 2007 12:56 (UTC +04:00)

Azerbaijan, Baku / corr Trend S.Babayeva / The Azerbaijani Microfinance Bank is planning to develop its own mortgage, Anar Hasanov, a member of the managing board of the Bank, said.

According to Hasanov, bank can launch distribution of mortgage from 2008."This will be commercial mortgage, deferring from the state mortgage program," Hasanov said.

The chairman of the bank said that conditions and rates of the program are still to be defined. More probably, they will be defined after discussions with the founders of bank.

According to Hasanov, presently the Azerbaijani Microfinance Bank holds more than 30% of micro loan market in Azerbaijan. The current loan portfolio of the bank exceeds $100mln.

The distribution of loan through the Azerbaijani Mortgage Fund (AMF) is held from March 2005 and during this period AZN 46mln of the Public Budget finance was allocated for this purpose.

So far, the mortgage financing has been carried out through the AMF though the public budget funds. Now mechanism for issuing mortgage is under development.

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