Azerbaijani Mortgage Fund finances 1,600 loans in 2009
Azerbaijan, Baku, Dec. 3 / Trend U. Ismayilova /
About 1,600 mortgage loans totaling $67 million manat have been granted in Azerbaijan since resumption of the mortgage loaning from June 1, 2009 to Dec. 1, the Azerbaijani Mortgage Fund (AMF) acting under the Central Bank said.
About 3,600 loans totaling 143 million manat have been issued since March 2006.
The Azerbaijani Mortgage Fund has launched its activity since March 2006. But it has suspended its activity due to lack of funds since summer of 2007. About 14 million manat was envisaged in the state budget-2010 to finance the social mortgage.
Besides the budget financing, the Mortgage Fund has issued bonds for 55 million manat. The securities have been already placed for 44 million manat.
The limits for banks have been increased more than four times since resumption of the mortgage loans up to now.
The maximum amount of granting ordinary mortgage in Azerbaijan is 50,000 manat at a rate of 8 percent and for 25 years. But the social mortgage hits 35,000 manat, at an annual rate of 4 percent and for 30 years. The advance payment for ordinary and concessional loans is 15 percent.
Mortgage loans are allocated via 18 bank organizations through the fund in Azerbaijan. AMF agents are 15 insurance companies and 9 appraisal companies.
On Dec. 2, the official exchange rate is 0.8025 manat to $1.
Do you have any feedback? Contact our journalist at: [email protected]