Azerbaijani AGBank considers bids on granting mortgage loans through mortgage fund
Azerbaijan, Baku, June 23 / Trend N. Ismayilova /
Azerbaijani AGBank got over 100 bids to grant mortgage loans owing to the Azerbaijani Mortgage Fund operating under the Azerbaijani Central Bank. It will grant loans soon, the bank's board first deputy chairman Tokay Alizadeh said.
"Consideration of these bids was launched. I think the bank will set down to give mortgage loans in the nearest future," Alizadeh said.
Mortgage portfolio of the bank through the Azerbaijani Mortgage Fund hits 1 million manat. The bank granted mortgage loans in the amount of 5 million manat in 2008.
Roughly 14.5 million manat was allocated in the state budget-2009 to financne social mortgage. Loan securities were issued in the amount of 55 million manat within commercial mortgage, 15 million has been allocated.
Mortgage loaning has been launched since March 25, 2006 via the Azerbaijani Mortgage Fund. Social mortgage has been granted since February 7, 2007. Demand for mortgage loans exceeded budget assignations. The Azerbaijani Mortgage Fund has ceased financing of mortgage loans via their standards since mid. June 2007. The fund got 68 million manat from the state budget over 2005-2008. Roughly 14 million manat was allocated in the state budget-2009. Portfolio of loans (1981) via the Azerbaijani Mortgage Fund's standards hits 75 million manat given total mortgage portfolio of banks in the amount of 250-300 million manat.
Rates on loans vary from 4-8 percent (on Azerbaijani mortgage fund's standards) to 18-20 percent of commercial banks. Term hits from 10 to 30 years. Agents of the fund include 17 banks.
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