Azerbaijan, Baku, July 10 / Trend N.Ismayilova /
The Azerbaijan Mortgage Fund (AMF) under the Central Bank of Azerbaijan has granted loans worth 52.1 million manat since the beginning of 2010, the AMF reported.
The total volume of refinancing of the loans issued previously by the banks amounted to 45.7 million manat. The 2010 state budget will provide 14 million manat for issuance of mortgage lending, of which 5.1 has already been allocated.
Based on AMF's data, 22.6 manat mortgage loans fells per capita in Azerbaijan in June compared to 21.4 manat in May, 17.05 manat - in 2009, 7.34 manat - in 2008, 5.28 manat - in 2007 and 0.2 manat- in 2006.
Of the total number of loans 72 percent fell to young people and young families and 20 percent- people aged above 36.
It is planned to keep the current dynamics of the population's demand in mortgage lending in 2010.
Under the AMF's terms, the maximum amount of the issuance of conventional mortgages in Azerbaijan is 50,000 manat at a rate of eight percent and for 25 years. But the amount in the 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.
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.
Mortgage lending in the country began from March 25, 2006 by the AMF standards. From February 7, 2007 social mortgage was given. Demand for mortgages exceeded the budget provisions. From mid-June 2007 AMF stopped funding mortgages on its standards, resuming in June 2009.
The official exchange rate is 0.8036 manat to $1 July 10.
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