Azerbaijan, Baku, June 29 / Trend U. Ismayilova, N. Ismayilova /
The Central Bank of Azerbaijan (CBA) proposes to continue funding of the social mortgage from the state in 2011 and increase its volume, CBA deputy chairman Aftandil Babayev said.
"The funds, envisaged in the state budget for social mortgage to the amount of 14 million manat, have not fully mastered yet. Since June 2009 we restored and expanded the mortgage owing to with funds obtained from the market. Meanwhile, we have expressed our intention that continuation of state support and increase in financing volumes would be perceived favorably next year amid the financial crisis, " Babayev said.
He said that it is necessary to further improve the mechanism of the mortgage, because it should be more comprehensive and cover all social layers.
In 2009, about 1,800 Azerbaijani citizens got mortgage loans through the AIF totaling 76 million manat. The volume of mortgage loans issued in the second half of last year [AIF resumed lending in June], exceeded the amount of mortgage financing in 2006-2007 (75.8 million manat). Only in December last year the AIF issued loans for 9 million manat.
Since 2006 the fund has issued mortgages worth 152 million manat. It allowed financing of 3,800 mortgage loans.
Besides budget funding [for 2009 state budget provided for 14 million manat], Mortgage Fund registered two-issue mortgage bonds worth 55 million manat, which are fully placed, and 75 million manat (38 million are placed).
Under the terms of AIF, the maximal amount of regular issuance of the mortgage in Azerbaijan is 50,000 manat at a rate of eight percent and for 25 years. Social mortgage is 35,000 manat, at an annual rate of four percent and the term - 30 years. Initial Fee for the ordinary and concessional loans is 15 percent.
AIF was founded in December 2005. It began to issue mortgage loans in Azerbaijan in March 2006. In June 2007 the fund ceased issuance of loans due to lack of financing and resumed lending in June 2009.
On June 29, the official exchange rate is 0.8039 manat to $1.