Azerbaijan, Baku, 23 January /corr. Trend I.Khalilova /The Azerbaijan's leading private Bank Standard refused plans to re-consider in 2008- the terms of giving mortgage credits within its own commercial program of mortgage crediting 'Manzilim', said Javid Guliyev, the First Deputy Chairman of the Bank's Board, on 23 January at a press-conference dedicated to the results of Bank's activities in 2007.
Earlier, the Bank highlighted the possibilities of decreasing the interest rates (currently makes up 18%) and increasing the period of the credits from five up to ten years.
Guliyev explained the refusal because of the consequences of the world crisis of liquidity, after which the investors refuse to allocate investments to the developing countries, including Azerbaijan, under the low rates and for a long time.
"They are prepared to allocate credits for 2-3 years, but not for more than ten years. Therefore, Bank Standard intends to await stabilization of the market. We held talks with the investors and are sure that we can not attract 'long term' money for the mortgage, even after considering the decrease in the rates by the US Federal Reserve System," he said.
According to him, all lenders in the developing countries have illustrated such a situation. Keeping the terms of the mortgage crediting as previous, the Head of Bank Standard consider that expansion of the mortgage portfolio will depend on the interest of the clients. The term of five years is very difficult for making the payments.
Bank Standard is an agent bank of Azerbaijan Mortgage Fund. About 34 mortgage credits (AZN 668 476) have been given in line with the bank. In addition, the Bank provided 17 mortgage credits totaling AZN 428,160, within its own program.
During the first quarter of the year, the bank plans to open the specialized mortgage center - branch of Mortgage.