National Bank Announces Date to Resume Azerbaijani Mortgage Fund’s Operating

Business Materials 4 September 2008 17:27 (UTC +04:00)

Azerbaijan, Baku, 4 September / Trend corr. U.Ismayilova /"Azerbaijani Mortgage Fund (AMF) will resume operating in early 2009," Elman Rustamov, Chairman of the National Bank of Azerbaijan (NBA) Managing Board, told Trend .  

"Fund's operating has not been resumed due to lack of funds," Rustamov said.

NBA considers that AMF should operate independently from the state budget and receives the necessary loan from local and foreign financial markets. At present, NBA studies the attractive international mortgage models.

AMF's crediting system, which has been suspended since June 2007, will be resumed as soon the Government will approve the commercial issue of mortgage loans experience. It is expected that the mortgage loans excluding social mortgage, will be issued through AMF on the rate not less of NBA's (15%). So far, loans had been issued through AMF on the average 6% or 8% rate per year. At present, commercial banks continue financing of real property purchase within their own mortgage programs on 16% or 18% rate per year.

The state budget allocates AZN 56mln to AMF for 2008.

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