Azerbaijani Royal Bank issues 8 mortgage loans through Azerbaijani Mortgage Fund
Azerbaijan, Baku, Jul.24 / Trend N.Ismayilova /
Azerbaijani Royal Bank has issued 8 mortgage loans through the Azerbaijani Mortgage Fund (AMF) under the Azerbaijani Central Bank since June 11, the bank said.
The bank launched lending in June and so far, has issued 8 mortgage loans worth 437,000 manat, the bank said.
At present the bank considers another 26 appeals and it is expected to issue 4 loans more soon, the same source said.
Mortgage portfolio of the bank through the AMF is 1 million manat. The bank received 500,000 of 1 million manats, most of which have already been posted
The bank's own mortgage program is also in progress.
In connection with the launch of mortgage loans, 17 banks, 7 appraisal companies and 10 insurance companies authorized by the AMF were approved.
Conditions of the mortgage lending 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 lending must not exceed 85 percent of the market price, monthly payment for a loan must not exceed 70 percent of debtor's monthly income, as well as presence of an agreement on life insurance and others.
Preferable conditions are granted to members of families of war victims, families of national heroes, internally displaced persons, civil servants with at least a three-year experience, candidates PhD and PhD, persons making special contributions to sport, as well as militaries with at least a three-year service term.
Each family having the right to a lax mortgage loan can use this chance only for one time.
The 2005-2009 public budget of Azerbaijan envisages 94 million manat for mortgage loans through the Mortgage Fund, with over 70 million manat distributed through banks.
The 2009 public budget has allocated 14 million manat to finance social mortgage lending.
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