Azerbaijan, Baku /corr. Trend I.Khalilova / The volume of the housing construction in Azerbaijan does not correspond to the amounts of the mortgage crediting, said the Head of IFC Project for Initial Mortgage Crediting Market in Central Asia, Santiago Ruiz-Morales. According to him, the housing construction is very rapidly developing in the Country, but they are being only partially financed by the mortgage crediting due to the limit of the resources.
"It needs to make these indicators closer to satisfy the growing housing demand of the population, but I am sure that everything is going on in a positive way" he said.
In addition, to avoid the problems with the world finance market due to the mortgage crediting in the USA, the Azerbaijani banks should direct only 20% of the gross capital towards long-term crediting. Such limitation is necessary due to the issue that the foreign finances are attracted for short-term period than the period of the mortgage credits. Only in this case, the short-term part of the deposits may be stable, but the remaining 80% will insure risks on long-term credits. In addition, the banks absolutely need re-financing of which mechanism differs in each country.
In addition, Morales drew attention to the risks in receiving long-term mortgage credits in the USD. If the borrowers do not have dollar assets, the risks are high due to the changeableness of the currency rate, the consultant said.