Azerbaijan’s Mortgage Fund increases number of authorized insurance agents
Azerbaijan, Baku, Dec. 16/ Trend , U. Ismayilova/ Azerbaijan's Mortgage Fund (AMF) at the National Bank of Azerbaijan has included Baki Sigorta insurance company into the list of authorized agents on insurance services for mortgage lending, a source in AMF said.
The list of AMF includes 11 insurance companies. There are 28 insurance companies in Azerbaijan.
AMF suspended mortgage lending in summer of 2007 because of lack of funds. Nearly AZN 26mln was allocated for AMF in 2006 and AZN 20mln in 2007. About AZN 22mln of AZN 34mln meant for 2008 has been allocated. As much as AZN 14.5mln is expected to be allocated to finance social mortgage in 2009. AMF has not yet restored financing mortgage lending. It will be restored after a shift to commercial principle of lending.
The domestic banks have granted AZN 260mln loan through AMF since the inception of the Fund. A total of 8,000 mortgages were lent, 1,800 of which were financed by the government and 6,200 - by banks.
AMF has financed mortgage lending carried out by 23 authorized bank organizations.
Baki Sigorta has been founded in 2007 by Azerbaijani Bank Respublika. Baki Sigorta has been set up by acquiring control package of shares (over 50% of shares) of Tural Sigorta insurance company. The remaining part of shares of the company is held by physical persons.
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