Azerbaijani Largest Bank to Launch Mortgage Lending through Own Funds

Business Materials 25 October 2008 17:05 (UTC +04:00)

Azerbaijan, Baku, 25 October / Trend corr. I.Khalilova/ "International Bank of Azerbaijan (IBA) intends to launch mortgage lending through its own funds. AZN 10mln in bank's budget for 2009 will be envisaged for this purpose," CEO of IBA Jahangir Hajiyev said.

"Given the global financial crisis, we may face problems regarding drawing in of long-term funds and their placement, however, even without them IBA may appropriate its own funds to mortgage lending," Hajiyev said.

A special mortgage program is being developed and the terms for mortgage lending are being specified. The process is expected to complete by the end of the year. A special group was created for this purpose.

IBA is a member of the Azerbaijan Mortgage Fund (AMF) of the National Bank of Azerbaijan (NBA). However, it has not yet launched mortgage lending through budget funds. In summer 2007, AMF suspended loaning. Refinancing interest rate of AMF authorized banks was 6% and the maximal interest rate for mortgage loans was 12%.

The state mortgage program developed by NBA was launched on 1 March 2006.

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