Nikoil Bank to Mortgage under New Conception in Azerbaijan
Azerbaijan, Baku, 3 July / corr. Trend I.Khalilova / Nikoil, an investment and business bank, plans to devise a conception on development of its mortgage program, which will be presented to shareholders of the bank for examination in September, Vasiliy Khamaza, the president of the bank, said.
"We intend to renew our own mortgage program, claimed at the Azerbaijani market and developed effectively," Khamaza said.
At present, Nikoil is rated as the third for the volume of mortgage credit at the market. The bank issued mortgage credits for AZN 15mln.
According to the terms of Nikoil bank, the credit is allocated to the Azerbaijani citizens for 20 years with an annual rate of 14% in case of advance payment by 15%. Minimum amount of the loan is $10,000 and maximum - $400,000.
Target use of the loan is to purchase an apartment or individual house, is the obligatory term of the program.
Earlier the bank issued a loan with soft terms of the Azerbaijani Mortgage Fund (AMF), operating at the National bank. A portfolio of the bank on this loan was equal to AZN 3mln ($3.5mln) on 77 loans. However, the AMF refinanced only half part of mortgage credits - 37 credits, issued by the bank, at the amount of AZN 1.236mln. Nikoil bank issued the last credit through the line of the fund with 8% of annual interests.
Crediting with the terms of the fund was suspended in mid-summer 2007.
The current exchange rate of US dollar is AZN 0.811 on 2 July.
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