Azerbaijani Finance Ministry prepared to resume social mortgage financing: minister
Azerbaijan, Baku, March 20 / corr Trend N.Ismayilova /
Social mortgage financing from the public budget depends on the National Bank of Azerbaijan's Azerbaijani Mortgage Fund (AMF), Finance Minister Samir Sharifov said on March 20.
"There is no problem with allocating funds from the budget. The AMF should appeal to the ministry in this regard," Sharifov said. "The country has these funds and they will be opened as soon as they are claimed."
This may occur in March or April depending on the AMF.
A total of 14.5 million manat was deposited in the budget to finance social mortgages in 2009.
Mortgaging at AMF standards was launched on March 25, 2006. Social mortgaging was set up on Feb. 7. The demand for mortgages exceeded budget assignments. The fund ceased AMF-standard mortgage financing in mid-June.
In 2005-2007, the AMF received 46 million manat from the budget. Thirty-four million manat have been allocated through two tranche 22 million manat loans.
The AMF-standard loan portfolio totaled 67.8 million manat, with a total banking mortgage portfolio at a rate of 250-300 million manat.
The credit rates of commercial banks fluctuate from 8 to 18-20 percent on terms from 10 to 25 years.
The AMF has 23 authorized bank organizations.
However, the AMF intends to resume mortgage lending next year with the assistance of the International Financial Corporation (IFC).
The subsidized mortgage model is applied by the AMF and restricts mortgage financing resources. A model for commercial mortgages will be introduced to expand opportunities and attract extra funds.
Commercial banks began attracting foreign loans through mortgages after suspending AMF loans.
The first loan from the Black Sea Bank of Trade and Development at a rate of $8 million was given to Texnika Bank in 2007. In 2008, the IFC granted $15 million to UniBank to finance the dwelling. The second loan at a rate of $5 million was granted to Azerdemiryolbank. The IFC is considering the opportunity to grant mortgages to Texnika Bank and Mugan Bank by the end of the year.
On March 20, the official exchange rate is 0.8026 manat to $1.
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