Azerbaijan resumes mortgage loaning
Azerbaijan, Baku, June 1 / Trend , U.Ismayilova/
At present Azerbaijan is resuming mortgage loaning which was suspended in summer 2007 for the lack of funds.
The Azerbaijani State Committee on Securities registered emission of non-documentary bonds of the Azerbaijan Mortgage Fund at the country's Central Bank, the committee said. There were 55,000 bonds with a nominal value of 1,000 manats each.
The AMF's 17 authorized banks, 7 appraisal companies and 10 insurers have been determined due to launching mortgage loaning.
The conditions of mortgage loans are the following: loans must be issued in national currency - manat, and only to the citizens of Azerbaijan. The subject of the mortgage can only be apartments and private homes, the amount of mortgage loan should not exceed 85 percent of the market cost of the property, which lie under the mortgage, the monthly payment for the loan should not exceed 70 percent of the borrower's monthly income, the amount of life insurance shall exceed the amount of the mortgage loan and others.
Access to the preferential loans may be gained by the families of martyrs, families of national heroes, internally displaced persons, civil servants with experience of at least three years, candidates and doctors of science, persons with special achievements in sports, as well as the minimum period of military service for three years.
Each family who has the right for preferential mortgage can take advantage of this only once.
Today Azerbaijan Mortgage Fund refinanced mortgages at 63.9 million manats issued through authorized banks, which is 94 percent of the total mortgage portfolio. During the period from March 2006 to June 2007, when the AMF had active operations on financing the purchase of housing, banks issued mortgage loans at 67.9 million manat.
During 2005-2008, the Public budget of Azerbaijan provided 94 million manat for mortgage loans through the AMF, of which 68 million manat was allocated through the banks.
The 2009 Public budget envisages 14.5 million manats to finance the social mortgage.
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