Azerbaijan, Baku, Aug.1 / Trend N.Ismayilova /
The Azerbaijan Mortgage Fund (AMF) under the Azerbaijani Central Bank issued over 400 mortgage loans for two months, the fund said on Aug. 1.
"The total volume of financing exceeded 17 million manat and the volume of mortgage loans, and mortgage loans issued in July hit 16 million manat," the fund said.
So far, the authorized loan organizations received over 1,200 appeals on to get common mortgage loans and 150 - on lax mortgage loans. The volume of loans on the received appeals exceeded 51 million manat and 5 million of these fell to on lax loans.
The maximum rate of common loans in Azerbaijan amounted to 50,000 manat under 8 percent per year for 25 years, social mortgage to 35,000 manat under a 4 percent per year for 30 years. Initial payment for common and lax loans is 15 percent
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 2009 public budget has allocated 14 million manat to finance social mortgage lending
The 2005-2009 public budget of Azerbaijan envisages 94 million manat for mortgage loans through the Mortgage Fund, with over 75.8 million manat distributed through banks. Moreover, the bank issued 55,000 bonds with a nominal value of 1,000 for each. The total volume of emission is 55 million manat and 25 million of these were sold. Full placing of the emission will enable to issue about 1,100 mortgage loans.
On Aug.1, the official exchange rate is 0.8043 manat to $1.
Do you have any feedback? Contact our journalist at: [email protected]