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National Bank of Azerbaijan to Raise Interest Rates on Commercial Mortgage

Business Materials 11 February 2008 15:16 (UTC +04:00)

Azerbaijan, Baku, 11 February / corr. Trend U. Ismayilova/ The first mortgage experience of the Mortgage Fund of Azerbaijan showed that there is a big demand for commercial mortgages by the public, Elman Rustamov, the chairman of the Board of Directors of the National Bank of Azerbaijan said on 11 February.

"The allocation of some AZN220mln for mortgage loans to 6,200 people in the course of year proves this," Rustamov said.

The Azerbaijani Mortgage Fund (AMF) has been issued loans from March 2006 to June 2007. The Fund stopped issuing loans due to a lack of funds.

Rustamov said that the National Bank of Azerbaijan will submit to the Government a package of proposals on the realization of mortgage lending in the county. "The package of proposals includes the revival of the commercial mortgage and a rise in interest rates," Rustamov said.

"The rise in interest rates depends on key macroeconomic indicators," he said.

The AMF refinanced mortgage loans granted by 23 authorized banks.

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