Azerbaijan, Baku, Dec.17 / Trend N.Ismayilova /
The Central Bank of Azerbaijan prepares to discuss a plan for the mortgage market development, CBA first deputy chairman Alim Guliyev said on Dec. 17.
The CBA works on improvement of mortgage mechanism, since we consider it necessary and that there are sufficient possibilities, Guliyev said
"Mortgage market has not problems with self-financing from banks. We have enough resources. There may be only temporary restrictions in connection with collecting the documents or joining the system of new banks. Today, all 18 banks joined the financing of mortgage programs and continuing lending," Guliyev said
Eighteen banks, 9 assessment companies and 15 insurers are AMF agents
The conditions of mortgage loans are the following: loans must be issued in national currency - manat, and only to the citizens of Azerbaijan. The subject of the mortgage can only be apartments and private homes, the amount of mortgage loan should not exceed 85 percent of the market cost of the property, which lie under the mortgage, the monthly payment for the loan should not exceed 70 percent of the borrower's monthly income, the amount of life insurance shall exceed the amount of the mortgage loan and others
As of December 1, Azerbaijan Mortgage Fund (AMF) issued mortgage loans to 1,600 citizens in amount of 67 million manat. The total amount of loans made up 143 million manat since March, 2006. About 3,600 citizens received mortgage loans to solve communal problems
State budget envisages 14 million manat for the social mortgage in 2009. The placement of mortgage bonds has conducted to finance the regular mortgage since June 16, 2009. To date, the auction were given bonds of $ 44 million manat and the entire volume of bonds had been fully placed
The Mortgage Fund has issued bonds totaling 55 million manat with minimum cost of each bond worth 1000 manat
On Dec. 1, the official exchange rate is 0.8032 manat to $1.
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