Resuming mortgage lending not to have significant impact on Azerbaijani insurance market

Business Materials 10 June 2009 17:41 (UTC +04:00)

Azerbaijan, Baku, June 10 / Trend , U. Ismayilova/  

Resuming mortgage lending did not almost have any impact on country's insurance market, Azerbaijan Insurance Association Director and Head of MBASK insurance company Jamil Malikov said.

"Insurance makes 0.25 percent of the loan on average," he said.

He said given the limit to mortgage lending and 14 million manat allocated for loan, it will mean additional 35,000-50,000 manat on insurance market.

"And given the fact that the volume of market amounted to 150 million manat in the first quarter this is not a lot of money," Melikov said.  

Azerbaijan Mortgage Fund under Azerbaijan's Central Bank resumed mortgage lending on June 1. Lending was suspended during the summer 2007 due to lack of funds.

Azerbaijani banks will start mortgage lending via the Azerbaijan Mortgage Fund in 10-15 days, Central Bank Chairman Elman Rustamov said.

"Request by the people for a mortgage is growing and banks are preparing to lend and mortgage securities is still being issued. This procedure will be completed soon and lending will resume in 10-15 days," Rustamov said.  

AMF registered the issue of mortgage bonds in the amount of 55,000 units with nominal value of 1,000 manat each. The total emission is 55 million manat.

He said mortgage lending will be issued to buy apartments in the newly-built buildings and apartments from second housing market.

On June 9, the official exchange rate is 0. 8037 manat to $1.

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