Azerbaijan, Baku, Feb. 26 / Trend E.Ismayilov /
The Azerbaijan Mortgage Fund operating under the Central Bank of Azerbaijan (CBA) is negotiating to attract foreign financial resources to expand mortgage lending in the country, CBA President Elman Rustamov said today. Negotiations are held with international financial institutions.
"However, the funding sources are limited because of the ongoing global economic crisis," he added.
He said it is difficult to carry out large-scale mortgage lending through the AMF's funds. Thus, other options - a parallel mechanism of a mortgage and external sources of funding is under discussion.
In 2009, 1,800 Azerbaijani citizens were granted mortgage loans worth 76mln manat through the. The volume of mortgage loans issued in the second half of 2009 [AMF resumed lending in June], exceeded the amount of mortgage financing in 2006-2007 (75.8 million manat). Only in December 2009, the AMF issued loans worth 9 million manat.
In 2006, the fund granted mortgage loans in the amount of 152 million manat, which allowed funding 3,800 mortgages.
In addition to budget funding [the 2009 state budget provided 14 million manat for this] the fund issued bonds for 55 million manat, 49 million manat of which was placed in 2009.
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.
Conditions of the mortgage lending are as the following: loans must be issues in the national currency with manats and only to Azerbaijani citizens, and an object of the mortgage can only be an apartment or private houses, volume of the mortgage lending must not exceed 85 percent of the market price, monthly payment for a loan must not exceed 70 percent of debtor's monthly income, as well as presence of an agreement on life insurance and others.
Preferable conditions are granted to members of families of war victims, families of national heroes, internally displaced persons, civil servants with at least a three-year experience, candidates PhD and PhD, persons making special contributions to sport, as well as militaries with at least a three-year service term.
Each family having the right to a lax mortgage loan can use this chance only for one time.
The AMF was founded in December 2005 and began to issue mortgage loans in Azerbaijan in March 2006. In June 2007 the fund suspended the mortgage lending due to lack of financing and resumed lending in June 2009.
Feb. 26, the official exchange rate is 0.8034 manat to $1.
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