TBC Credit to Attract Funds of International Financial Institutions for Mortgage Crediting in Azerbaijan
Azerbaijan, Baku, 2 June / corr. Trend I. Khalilova/ The non-banking credit organization TBC Credit (SOA Credit previously) is holding talks with the European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) to attract funds for mortgage crediting, said Zezva Tsikarishvili, the deputy director general of the Georgian TBC Bank, owner of 75% shares of the credit organization.
"The volume of the funds which will be attracted for mortgage lending through TBC Credit will be determined in two-three weeks. However, the talks with IFC are still in the early stages," Tsikarishvili said.
"We think that all the institutions operating in the region will actively corporate with TBC Credit," the deputy director general of the Georgian TBC Bank said.
TBC Credit began mortgage crediting in 2002. The mortgage program of credit organization is based on the financing on the financial terms which underwent changes first in July 2006. Unlike terms of the Azerbaijani Mortgage Fund at the National Bank of Azerbaijan, TBC Credit grants credits for repairs and purchase of lands and construction of houses for one family. The distinguish feature is that TBC Bank takes other real estate rather than purchased housing as a deposit. The initial installment is 20%.
The maximum volume of the credit for purchase of housing totals $100,000 and $50,000 for the repairs, while ordinary mortgage credits through Mortgage Fund of Azerbaijan were granted until the crediting stopped in summer of last year with social mortgage crediting totaling AZN50,000 and AZN35,000. The credit organization grants funds for housing with 16% interest rate annually for 12 year period.
At present, half of the loan portfolio of TBC Bank accounts for the mortgage crediting. The loan credit makes up $14mln and with further plans to increase it up to $30-$40mln.
The Shorebank International consulting company was the 100% founder of TBC Credit until the TBC Bank joined them in 2008.
The assets of TBC Credit totaled $10.5mln as a result of 2007, with further plans to increase it up to $40mln.
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