Azerbaijani National Bank to Develop Economic Measures to Prevent Mortgage Crisis

Business Materials 11 February 2008 17:48 (UTC +04:00)

Azerbaijan, Baku, 11 February / Trend corr. U.Ismaylova / There are no symptoms of a US mortgage crisis in Azerbaijan, Elman Rustamov, the chairman of National Bank of Azerbaijan(NBA), stated on 11 February.

"NBA foresaw this situation and we have held discussions with banks in order to prevent this crisis," Rustamov said.

Kazakhstan and Georgia both faced problems connected with the world mortgage crisis. This occurred due to Kazakhstan banks allocating long-term mortgage credits, while the credits were loaned for a short-period. As a result of the crisis foreign investors refused to allocate additional investments to these banks.

According to Rustamov, currently the bank develops regulatory and economic measures in order to prevent a crisis. "Perhaps, these measures will be directed at strengthening the corporative system within the bank," Rustamov said.

A mortgage crisis occurred in US in 2006, the main reason being the increase of non-returned housing credits. The crisis became international in spring 2007 and the liquidity crisis arose in international markets. Central banks in countries began to inject tens and thousands of millions of dollars to their financial systems.

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