Azerbaijan, Baku, June 18 / Trend , N.Ismayilova/
The Azerbaijani Ata Bank has finished receiving applications to issue mortgage lending via the Azerbaijan Mortgage Fund (AMF) under the Central Bank of Azerbaijan (CBA) and will issue them soon, the bank said on June 18.
"The bank has received 40 applications for potential debtors and is currently examining them, because a maximum possible number of loans to be issued is 20," the bank said.
Ata Bank is fully prepared to submit only three applications to the AMF and they will be sent to the fund soon, the bank said.
Bank's portfolio via AMF totals 1 million manat.
Bank will also proceed with its own mortgage program.
The 2009 public budget has allocated 14.5 million manat to finance social mortgage lending. It has issued bonds worth 55 million manat for commercial mortgage lending, 15 million of which have been placed.
Azerbaijan launched mortgage lending under AMF standards on March 25, 2006 and social lending in February 2007.
Demand for mortgages exceeded the budget assignment and AMF ceased funding for mortgage loans on its standards from mid-June 2007. AMF 68 received million manat from the public budget in 2005-2008. Portfolio of loans (1981) under AMF standards is 75 million manat, with an overall mortgage portfolio of banks amounting to 250-300 million manat.
The rates on loans vary from 4-8 percent (standard AIF) to 18-20 percent with term of 10 to 25 years in commercial banks. AMF has 17 agent banks.
On June 18, the official exchange rate is 0. 8039 manat to $1.
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