Azerbaijani Association of Banks designs amendments to law on mortgage
The Azerbaijani Association of Banks (AB) designed amendments and additions to the law on mortgage, AB President Eldar Ismayilov said on July 21.
New proposals submitted to the Central Bank and to the Azerbaijani Parliament, Ismayilov said.
Working group with the expert group of AB designed the proposals on legal matters. In particular, they design draft regulations and a mechanism for the realization of real estate auctions as a loan pledge object. Under the project, banks offer tools to improve the efficiency of auctions, their streamlines and clear regulations.
Rates on mortgage loans through the Azerbaijani Mortgage Fund comprise from 4 to 8 percent. The mortgage lending is given for a period from 3 to 30 years with the initial payment of 0-15 percent.
The Azerbaijani 2005-2008 public budget will assign 80 million manat to the mortgage financing through the Azerbaijani Mortgage Fund. Some 68 million manat has been allotted. The public budget assigned 14.5 million manat to finance the social mortgage in the country in 2009.
On July 21, the official exchange rate is 0.8041 manat to $1.
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