Azerbaijan, Baku, July 16 / Trend , N.Ismayilova/
The Azerbaijani Gandja Bank will complete examination of applications to issue mortgage loans through the Azerbaijan Mortgage Fund (AMF) under the Central Bank by late July and will issues them, the Head of the Bank's Credit Department, Emin Hajiyev said.
"The bank is considering applications from people and plans to issue mortgage loans via the AMF by late July," Hajiyev said.
The bank is considering about 30 applications from people, according to preliminary results of examination, the bank plans to issue loans for 20-22 applications, he said. The initial amount allocated by the AMF to the bank to issue mortgage loans is about 500,000 manat.
"The priority in the bank's mortgage lending will be to finance new buildings, although under the terms of the fund, mortgage loans are issued also for the purchase of the secondary housing market," said Hajiyev.
He said identification of priorities in the financing of mortgages is conditioned by higher depreciation on the secondary housing market and the risk of problems with insurance companies in the future, as well as credits for a long period.
Gandja Bank operates since 1994. Bank's head office is located in the country's Ganja city.
The Azerbaijani Mortgage Fund (AMF) under the Central Bank of Azerbaijan (CBA) issued 50 mortgage loans for 10 years. A total volume of financing comprises roughly 3.5 million manat. Over 70 people have received mortgage loans since June 1.
So far, 900 people have applied to the AMF to receive ordinary mortgage loans. The total volume of loans on the got appeals amounts to nearly 40 million manat.
The AMF notes a high dynamics on mortgage loaning, though the MAF issues only four loans in March 2006 after launching the mortgage loans in Azerbaijan.
A maximum size of ordinary mortgage in Azerbaijan makes up 50,000 manat with 8 percent of interests rate for 25 years, and on social mortgage - 35,000 manats with 4 percent of interest rate for 30 years. The initial payment for ordinary and lax loans is 15 percent.
Conditions of the mortgage loaning are as the following: loans must be issues in the national currency with manats and only to Azerbaijani citizens, and an object of the mortgage can only be an apartment or private houses, volume of the mortgage loaning must not hit 85 percent of the market price, monthly payment for a loan must not hit 70 percent of debtor's monthly income, as well as presence of an agreement on life insurance and others.
Preferable conditions are applied to members of families of victims of war, families of national heroes, internally displaced persons for civil servants with at least a three-year experience, candidates of science or persons having a doctor degree, persons making special contributions to sport, as well as militaries with at least a three-year experience.
Each family having the right to a lax mortgage loaning can use this chance only for one time.
2005-2009 Public budget of Azerbaijan envisages 94 million manat for mortgage loans through the Mortgage Fund, of which over 70 million manat has been distributed through banks today
The 2009 public budget has allocated 14 million manat to finance social mortgage lending.
On July 16, the official exchange rate is 0.8042 manat to $1.
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