Azerbaijan, Baku /corr. Trend I.Khalilova / The National Bank of Azerbaijan (NBA) takes additional measures to increase sensitivity of Country's banking system to the worldwide financial crisis, said the NBA's Chairman, Elman Rustamov, during discussions in Azerbaijani Parliament over 2008 Public budget.
Although the mortgage crisis in the USA did not affect Azerbaijan, it does not give grounds to be inactive. Currently the mortgage crediting by the Azerbaijani banks amounts to AZN 260mln. AZN 60mln of them has been allocated from the Public budget.
"In this case, the risks are growing in the banking sector and we are concerned on the external borrowings," Rustamov said.
According to him, currently the amount of the foreign borrowings makes up $1bln and by the end of the year, the figure is expected to increase up to $1.5bln. The mortgage crediting in Azerbaijan via Azerbaijan Mortgage Fund of the NBA began in March 2005. However, giving credits via the Fund was ceased in summer 2007.
The Government of Azerbaijan allocated AZN 35mln in 2008 Public budget for financing social mortgage. In addition, the Government considers the issue of applying commercial mortgage, which will be financed through attracting funds.