Azerbaijani Private Bank Study Possibilities of Mortgage Portfolio Security

Business Materials 11 April 2008 18:44 (UTC +04:00)

Azerbaijan, Baku, 11 April / Trend corr. I.Khalilova / The Azerbaijani Texnika Bank has implemented negotiations with international financial institutes to attract additional funds for mortgage crediting through securitization, Samir Huseynov, Chairman of the Board stated.

"We examine the possibilities to implement securitization project and for this purpose bank should have mortgage portfolio in amount of $75mln," Huseynov said.

Texnika Bank's priority activity in 2008 will be directed to increase the credit portfolio, within the framework of housing financing to attract minimum of $75mln or $100mln. Bank is planning to hold securitization on the foreign financial markets in the first quarter of 2009.

According to Huseynov, at present, bank is studying the legal and technical possibilities to transform property rights within the framework of current national legislation.

"I believe that some changes must be injected into the legislation," Texnika Bank head stated.

At present, the mortgage portfolio of the bank makes up AZN27mln. The credits were attracted from the Black Sea Trade and Development Bank (BSTDB) - $8mln for mortgage financing, 85% of which has been used. Today, the negotiations are being held to attract mortgage credits with international organizations and private European investment funds.

The current official course at National Bank of Azerbaijan comprises 0.83 AZN/USD.

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