Azerbaijani large bank postpones mortgage lending

Business Materials 17 April 2009 20:10 (UTC +04:00)

Azerbaijan, Baku, April 17 / Trend , I.Khalilova /

The International Bank of Azerbaijan (IBA) postponed mortgage lending until attraction of long-term resources, said the chairman of the IBA Jahangir Hajiyev.

"As soon as we are able to provide long-term loans for a period of 10-15 years, we will begin this process immediately - said Hajiyev. - But we have not abandoned the mortgage, and work continues in this regard."

The plans of the IBA included beginning the process this year at its own expense. For this purpose, the 2009 budget of the bank provided 10 million manat.

IBA has prepared a special mortgage program.

The IBA is a member of Azerbaijan Mortgage Fund (AMF) under the Central Bank of Azerbaijan, but it has not started providing mortgage loans. In summer 2007, AMF suspended mortgage credits. The refinancing rate of the authorized banks of the Mortgage Fund was 6 percent per annum and the maximum rate of mortgage credits was 12 percent per annum.

The state mortgage program, developed by the Central Bank of Azerbaijan, launched in March 2006.

Official rate on April 17 is 0.8032 AZN/USD.

Do you have feedback? Contact our journalist at: [email protected]