Azerbaijan, Baku / Trend corr. I.Khalilova / The Black Sea Trade and Development Bank is planning to allocate its first mortgage loan in Azerbaijan to Texnikabank, Khagani Guluzadeh, deputy manager of the bank, reported. The total sum of the loan made up $6mln.
"The agreement may be signed at the beginning of December," Guluzadeh said.
According to Guluzadeh, mortgage financing conditions at the expense of foreign loans will differ from the Azerbaijani mortgage fund system. However, the bank will try the interest rates on loans at no less than 15%. The loans will be provided over 15 or 20 years, but the maximum size of loan will constitute $100,000. In compliance with conditions of the Mortgage Fund the maximum size of a mortgage loan must not exceed AZN 50,000 and the average rate on mortgages made up 6%.
"We will introduce such conditions to insure banks' risk as a result of the fall in prices of properties. There is a big risk in world mortgage markets which leaded to a decrease property prices by 50%. However, we have observed an increase of property prices in Azerbaijan lately," Guluzadeh said.
The mortgage portfolio of Texnikabank constituted AZN 11mln. The bank has allocated 350 mortgage loans so far. Texnikabank currently has its own mortgage program.