IFC to Allocate $30mln for Mortgage Financing in Azerbaijan

Business Materials 28 February 2008 18:26 (UTC +04:00)

Azerbaijan, Baku, 28 February/ Trend corr I. Khalilova/ The International Financial Corporation (IFC) plans to allot $30-35mln for the mortgage financing in Azerbaijan, the IFC representative to Azerbaijan Aliya Azimova said on 26 February. IFC intends to invest the funds through the local banks.

According to Azimova, the funds will be enough for 3 or 4 banks.

"The initial list of the banks has been defined, but we cannot divulge it as yet, as we are negotiating with each bank individually," she said.

According to Azimova, the first credit intended for the mortgage financing will be allocated to the UniBank - within a month the IFC Board of Directors plans to approve of $15mln to be allotted to the bank. The funds will be allocated within the framework of the Housing Finance program and will be intended for the development of mortgage crediting in Azerbaijan. Housing Finance envisages long-term mortgage financing, as well as the consultations. The credit planned for the allocation to the UniBank, is the first investments within the framework of this program.

IFC also intends to render assistance to the Azerbaijan Mortgage Fund (AMF) attached to the National Bank of Azerbaijan, in the development of extensive program on development of the mortgage market in Azerbaijan (primary and secondary). Currently, IFC is negotiating with the AMF within the framework of the memorandum which was signed in January.

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