Tendencies on Azerbaijani mortgage market optimistic for transition to self-finance mechanism: head of SCS

Business Materials 4 August 2009 18:58 (UTC +04:00)

Azerbaijan, Baku, Aug.4 / Trend N. Ismayilova /

Tendencies on Azerbaijani mortgage market are optimistic for transition to self-finance mechanism, Chairman of the Azerbaijani State Committee on Securities (SCS), Rufat Aslanli said on Aug.4.

"Classic mortgage mechanism is funded directly through the market. However a new tendency on the mortgage market emerged since June is optimistic for transition to self-financing model," Aslanli said.

According to Aslanli, the market demand is sufficient to place the full amount provided by the public budget to mortgage loans.

Local banks are investors in mortgage bonds, which placed in exchange. Since a group of individual investors has not been formed in the country yet, despite that this is one of the main criteria to stimulate demand in the securities market, Aslanli added.

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.

The 2009 public budget has allocated 14.5 million manat to finance social mortgage lending

In connection with the launch of mortgage loans, 17 banks authorized by the AMF were approved.

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