Mortgage to be granted for purchase of secondary housing in Azerbaijan
Azerbaijan, Baku, June 10 / Trend U. Ismayilova /
Azerbaijani mortgage fund under the Azerbaijani Central Bank states that there is no limitations for buying both initial and secondary housing given numerous requests of population, the fund said on June 10.
"Population can apply to banks-agents of the fund to buy initial and second dwelling under mortgage," the message said.
Azerbaijani Mortgage Fund applied to the ministry of finance to get funds allocated from state budget to finance mortgage loans. The fund will set down to finance social mortgage after getting these funds.
Roughly 14.5 million manat from state budget-2009 was allocated to finance social mortgage.
Azerbaijani mortgage fund under the Azerbaijani Central Bank resumed loaning from June 1. It suspended granting of loans in summer 2007 because of lack of funds.
Mortgage loaning began in accordance with standards of the fund in Azerbaijan on March 25, 2006. Granting of social mortgage began from February 7, 2007. Demand for mortgage loans exceeds budget assignment. The fund ceased financing of mortgage loans on its standards from middle of June 2007. The fund got 68 million manat from state budget over 2005-2008. Roughly 14 million manat was mortgaged in state budget for 2009.
Rates on loans vary from 8 percent (according to standards of the fund) to 18-20 percent in commercial banks. Term is from 10 to 25 years. Agents of the fund are 17 banks. Maximal amount of loan obtained through the fund hits 50,000 manat for a term from 3 to 25 years.
On June 10, the official exchange rate is 0.8037 manat to $1.