Azerbaijan, Baku, June 10 / Trend , N.Ismayilova/
A limit of 1 million manat to finance mortgage credits by the Azerbaijani Mortgage Fund banks-agents acting at the Central Bank of Azerbaijan (CBA) is an initial and the amount will be increased in the future, CBA Board Chairman Elman Rustamov said.
"This limit is due to the Mortgage Fund will receive funds from placed bonds of issued 55 million manat. Therefore, every authorized bank will receive 1 million manat to finance 20 mortgage credits at the initial stage," Rustamov said.
As soon as banks use the funds, the limit will be reconsidered in favor of increasing. Seventeen banks are agents of the Fund.
A total of 14.5 million manat was placed in the 2009-Public Budget for funding social mortgages. Rustamov said banks have completed preparations to allocate credits and the first tranche from the Public Budget is expected to be issued.
Mortgage lending was launched by standards of the Azerbaijani Mortgage Fund in the country March 25, 2006. The provision of social mortgage was commenced on Feb. 7, 2007. The demand for mortgages exceeded the budget provision, and from mid-June 2007, the AMF ceased funding for mortgage loans on its standards. Fund received 68 million manat from the Public Budget in 2005-2008, and 14 million manat was incorporated in the Public Budget in 2009. Portfolio of loans (1981) by AMF standards is 75 million manat, with an overall mortgage portfolio of banks amounting to 250-300 million manat.
Loan rates fluctuate from 4 to 8 percent (by AMF standards) in the sum of 35,000 to 50,000 manat and allocation period of from 3 to 25 years.
On June 10, the official exchange rate is 0.8037 manat to $1.
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