Azerbaijan, Baku, Jul.24 / Trend /
Placement of the next part of interests bearing, book-entry stock and registered bonds of the Azerbaijani Mortgage Fund (AMF) under the Azerbaijani Central Bank in amount of 5,000,000 manat is launching in Azerbaijan on July 27, 2009, the Baku Stock Exchange (BSE) said.
Under the prospectus emissions, the placement will be held through open subscription. The bonds will be put on auction at current price of 100.2333%.
The maturity date of bonds is May 10, 2016. If demands exceed offers, all the appeals will be supplied in proportional order. The Azerbaijani Central Bank will be a primary organizer of the bonds placement.
The placement of the bonds was launched on June 16, 2009. So far, bonds worth 20 million manat have been put on the auction and all the bonds were fully placed.
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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