Azerbaijani Bank Respublika Expands its Mortgage Program’s Coverage Area

Business Materials 8 February 2008 17:03 (UTC +04:00)

Azerbaijan, Baku, 8 February / Trend corr I. Khalilova / Bank Respublika, a leading private bank in Azerbaijan, plans to expand the coverage area of its mortgage program in the regions of the country, which will be enabled by doubling of its mortgage crediting volume, the chair of the board Khadija Hasanova said.

At present, the bank finances the program from its own budget, but in 2008, Bank Respublika intends to attract the foreign mortgage crediting investments. Decisive negotiations and signing of agreements will be possible after the publicizing of the annual audit report in March.

"We are getting familiar with the terms of foreign fiscal institutions, which have been applied to us along with their programs," Hasanova said.

Bank Respublika's mortgage portfolio exceeds AZN 20mln.

"We work with very flexible conditions and depending on the pre-payment we finance a part of the project," she said.

Bank Respublika allocates mortgage credits for up to 10 years, with 15-18% interest rate.

At the beginning of 2007, the terms of the crediting through the Azerbaijan Mortgage Fund were re-considered and are as following: a mortgage credit is allocated for 3-30 years with 4-8% interest rate with 15% initial payment.