IFC Develops Strategy for Further Activity of Azerbaijan Mortgage Fund
Azerbaijan, Baku, 7 November / Trend corr. U.Ismayilova / The International Financial Corporation (IFC) will submit a strategy for further activity to the Azerbaijan Mortgage Fund (AMF) within the framework of the second stage of technical support, which has begun since December 2007, the AMF said.
"The German Academy of Banks is developing a strategy for the AMF for its further activity," Garth Bedford, an expert of the IFC's project on mortgage loaning in Azerbaijan and Central Asia, told Trend earlier.
The Mortgage Fund will receive assistance to shift to commercial mortgage at the next stage.
"We would like activity of the Fund to be more commercial base. At present we are taking measures, which are a part of strategy of the AMF, to involve not only state means, but also means of private sector and foreign investors," the IFC expert said. One of versions of investment can be mortgage bonds.
At present the AMF is using subsidized mortgage pattern, which limits mortgage financing in resources. It is necessary to introduce a model for commercial mortgage loaning at the Fund to expand opportunities and to involve additional means.
Measures on improvement of legislation and raising institutional potential of the AMF are being taken within the framework of the second stage of the IFC's technical assistance project. The International Financial Corporation finances the project jointly with the Swiss State Secretariat for economic relations (Seco).
The Azerbaijan Mortgage Fund at the National Bank functions since March 2007.
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