Black Sea Trade and Development Bank and Azerbaijani Bank to Sign First Mortgage Agreement
Azerbaijan, Baku / Trend corr. I.Khalilova / The Black Sea Trade and Development Bank (BRDB) is ready to allocate first credit for mortgage financing of the Texnikabank in the amount of $6mln, the head of the Department on Foreign Relations and Communications Haroula Christodoulou said on 29 November. According to Christodoulou, the document will be signed in Baku on 6 December.
"Presently, BRDB develops its operations in Azerbaijan and we launch mortgage financing with cooperation with Texnikabank," Christodoulou said.
BRDB Vice-president Andrei Kondakov will come to Baku to take part at the ceremony.
Khagani Guluzadeh, Texnikabank's Deputy Chairman, said that the mortgage financing conditions at the expense of foreign loans would differ from conditions of the Azerbaijani Mortgage Fund. However, the bank will try the interest rates not exceed 15. The loans will be allocated for 15 or 20 years in the amount of $100,000. The maximum size of the mortgage credit should not exceed AZN 50,000.
We will introduce such conditions to insure banks' risk as a result of fall in prices of properties. There is a big risk in world mortgage markets which leaded to decrease of price in property by 50%. However, we observe increase of price I property in Azerbaijan lately," Guluzadeh said.
The mortgage portfolio of Texnikabank constituted AZN И 11mln. The bank has been allocated 350 mortgage credits so far. Presently, Texnikabank develops own mortgage program.