New Mortgage Crediting Model Will Not Dramatically Differ from Bank Crediting: Azerbaijan’s National Bank

Business Materials 12 September 2008 16:42 (UTC +04:00)

Azerbaijan, Baku, 12 September / Trend corr. U.Ismayilova /Since 2009 those who has social mortgage may receive it via the Azerbaijani Mortgage Fund (AMF) line, Elman Rustamov, Managing Chairman of NBA, said on 12 September.

"The main problem of social mortgage is disuse. It is too strange," Rustamov said.

According to Rustamov, at present, AMF has funds to issue social mortgage, but no activity has been observed amongst recipients.

Speaking about the commercial mortgage model, Rustamov noted that the National Bank of Azerbaijan (NBA) currently studies the mortgage models of countries with mortgage crediting.

"We will work out the mortgage crediting model in 2009 and AMF will resume mortgage crediting issuing," Rustamov said.

The conditions for new mortgage crediting will not dramatically differ from the current ones, as well as will depend on the macro economic situation in the country.

"We offer to cancel AMF's dependence from the state budget as these moneys stand another reason for inflation rate growth," Rustamov said.

AMF stopped mortgage crediting issue in summer 2007 due to lack of funds. In 2006, AZN 25mln was allocated from the state budget and AZN20mln in 2007 for the Fund. Some AZN35mln has been allocated from the state budget in 2008 and AZN 10mln has already been transferred to AMF.

The correspondent can be contacted at: [email protected]