IFC to Involve Consultants to Develop Mortgage Crediting in Azerbaijan

Business Materials 20 February 2008 20:12 (UTC +04:00)

Azerbaijan, Baku, 20 February /corr. Trend I.Khalilova / The International Finance Corporation (IFC) will attract consultant to assist the National Bank of Azerbaijan in devising a new law draft on securitization in Azerbaijan, said the financial analyst of IFC Project for Initial Mortgage Crediting Market in Central Asia, Azer Aliyev.

In addition, the Corporation intends to render assistance to Mortgage Fund (AMF) of National Bank of Azerbaijan, with the applying commercial mortgage crediting. Aliyev said that a consultant will also be attracted for works in this regard.

Along with the State finance, AMF will attract funds from the internal and foreign markets. The AMF has already determined key direction of co-operation with the IFC.

Currently, the AMF applies subsided mortgages, which limits the mortgage financing. The Fund needs to introduce the commercial mortgage crediting to expand the opportunities and to attract additional finances.

Amongst five countries named in the IFC project, at the moment, Kazakhstan has mostly advanced in the mortgage crediting. The mortgage credits in Azerbaijan are being given via AMF, but gradually the banks begin to realize their own mortgage programs.

For Azerbaijani banks, giving mortgage credits via the method of securitization will be possible only after adoption of a program and law.

The measures to improve the legislation and increase the institutional potential of AMF are being implemented within the 2nd stage of IFC technical assistance program. The project is financed by the State Secretariat for Economic Affairs.