Kapital Bank to Render Mortgage Program

Business Materials 23 February 2008 14:58 (UTC +04:00)

Azerbaijan, Baku, 23 February / Trend corr. I.Khalilova / The half-privatized Kapital Bank launches implementation of its mortgage program at the expense of attracted credits in the sum of $10mln, Rauf Rzayev, the bank chairman, stated.

Presently, the negotiations are held with several foreign banks. Although, there is a preliminary agreement and borrowing conditions are agreed.

"The allocation of mortgage credits will be implemented at the expense of borrowed funds taking into consideration high prizes of domestic resources attracted from investment deposits," Rzayev said.

Kapital Bank's mortgage credits will be rendered for less term and high percentages, which were rendered within the framework of State Mortgage Program. The credit rates will make up 12% yearly.

The State Mortgage Program, developed by the National Bank of Azerbaijan (NBA), was put came to force from 1 March 2006, however, the allocation of mortgage credits were suspended from June 2007 due to shortcomings of funds.

Up to now Azerbaijani Mortgage Fund allocated credits by AZN 46mln at the expense of state budgets on 8% rate for 15 years term.