Azerbaijan, Baku, Aug. 15 / Trend I.Khalilova /
Since resuming mortgage loaning in Azerbaijan, on June 1, 2009, about 600 people received mortgage loans worth 25 million manat through the Azerbaijani Mortgage Fund (AMF) under the Central Bank, the Fund said on August 14.
"Since March 2006, total funding through the AMF has exceeded 100 million manat. As a result, about 2,600 families have been able to solve the housing problem and to pay off social needs, the Fund said.
Mortgage loaning in Azerbaijan will continue to be stable and long-lasting, the same source said.
The total amount of mortgage financing has exceeded 20 million manat over the past two months of 2009, including the July issue of mortgage loans amounting to over 16 million manat, while in 2006 the lending amounted to 5.6 million manat.
The AMF issued loans for a long term and at low interest rates. Average term of the loan was 24 years and average interest rate was 7.6 percent per a year.
The Fund issued mortgage loans worth 75.8 million manat in 2006-2007, which enabled to solve housing problems of 2,000 families.
The AMF issues mortgage loans through drawing funds. The Fund issued secured bonds worth 55 million manat, for a period of seven years and under three percent of interest per year. The bonds worth 25 million manat of total bonds have already been placed. Currently, the bonds proposed by the Fund in terms of profitability (3 per year) are attractive for investors compared to other existing securities in the market
The maximum sum of common mortgage loans in Azerbaijan amounted to 50,000 manat under 8 percent per year for the term of 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.
In connection with the launch of mortgage loans, 17 banks authorized by the AMF were approved. The 2009 public budget has allocated 14 million manat to finance social mortgage lending.
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