Azerbaijani Azerdemiryolbank says population's great interest to mortgage loans
Azerbaijan, Baku, June 19 / Trend , N.Ismayilova/
Azerbaijani Azerdemiryolbank took into consideration over 50 applications for issue of mortgage loans through the Azerbaijani Mortgage Fund (AMF) under the Central Bank of Azerbaijan (CBA).
"Despite the number of applications, the bank is still receiving them, which shows the great interest of population to the mortgage loans, but the issue of loans has not yet started," the bank said.
Loan portfolio of the bank through AMF exceeds two million manat, and planned to place additional one million manat. Bank received from the International Finance Corporation a loan of $5 million for housing finance.
Roughly 14.5 million manat has been invested to the 2009 Public Budget to finance the social mortgage, and bonds in the amount of 55 million manat have been issued for commercial lending, out of which 15 million have already been placed.
Mortgage lending was started in the country through AMF standards dating March 25, 2006. On Feb.7, 2007, the issue of social mortgage was launched. Demand for mortgages exceeded the budget provision, and from mid-June 2007, AMF ceased funding for mortgage loans on its standards. Fund received 68 million manat from the 2005-2008 Public Budget. Portfolio of loans (1981) on AMF standards is 75 million manat with an overall mortgage portfolio of banks amounting to 250-300 million manat.
Loan rates fluctuate at 4-8 percent (AMF standards) to 18-20 percent in commercial banks with a term of from 10 to 30 years. Fund's agents are 17 banks.
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