Azerbaijan, Baku, Jan. 6 / Trend /
About 1,800 Azerbaijani citizens got mortgage loans worth 76 million manat via the Azerbaijani Mortgage Fund operating under the Central Bank from June 1 - December 31, 2009, the fund said.
The amount of mortgage loans granted in the second six months of last year has exceeded the amount of financing mortgage over 2006-2007 (75.8 million manat). The Fund gave loans worth 9 million manat in December.
Totally, the fund has given loans worth 152 million manat since 2006. It allowed financing 3,800 mortgage loans.
The message said that it is planned to preserve the current dynamics to meet the population's demand for mortgage loaning in 2010.
Besides budgetary financing (the state budget envisaged 14 million manat in 2009), the fund issued bonds worth 55 million manat, 49 million manat were placed in 2009.
According to the Fund's conditions, a maximal sum of granting ordinary mortgage in Azerbaijan hits 50,000 manat with a rate of 8 percent and for 25 years. But the social mortgage envisages 35,000 manat with annual rate of 4 percent and for 30 years. The initial fee for ordinary and preferential loans is 15 percent.
The terms of mortgage loaning are the following: loans must be given in national currency - manat and only to Azerbaijani citizens. An object of mortgage can be only a flat or private houses. A sum of mortgage loaning must not exceed 85 percent of market cost. A monthly payment for a loan must not exceed 70 percent of a borrower's monthly income.
These terms also include a contract on life insurance, etc.
Preferential terms refer to members of martyrs' families, national heroes, internally displaced people, state officials with seniority of three years, candidates of sciences and those having doctors' degree, people having special achievements in sports, as well as military men with minimal seniority of three years.
Every family having the right to a preferential mortgage loan can use it only once.
Roughly 18 banks are authorized loan organizations of the fund.
On Jan. 5, the official exchange rate is 0.8029 manat to $1.