Restoring IFC's mortgage lending in Azerbaijan depends on results of studying experience of global financial crisis
Azerbaijan, Baku, September 16 /Trend, I.Khalilova/
International Finance Corporation (IFC) will not engage in mortgage lending, both in Azerbaijan and in general, by the completion of study of the experience of the global financial crisis, IFC representative in Azerbaijan, Aliya Asimova said Thursday.
"Unless we study the experience of the crisis in detail, IFC will not provide mortgage lending. Today, the mortgage is generally not a priority sector for IFC," said Azimova.
IFC approved for Azerbaijan only two loans for housing finance. For UniBank it approved a loan of $15 million for 7 years and for Demirbank - $5 million. Then the Corporation was ready to provide $40 million to 4-5 to local banks for mortgage development.
However, because of the crisis, IFC also refused to implement a business plan for commercialization of the Azerbaijan Mortgage Fund, acting under the Central Bank of Azerbaijan.
"The business plan for commercialization of the Mortgage Fund was prepared, but because of the global crisis it was necessary to adapt it to new conditions. Now implementing the business plan is not so urgent as it was three years ago, and as the crisis has changed the situation," Asimova said.
Today, she said the strategic role of the Mortgage Fund is somewhat different than was supposed by experts. "The experience of the crisis has not so studied that the international experts would provide the AMF any proposals to change its activities," said the IFC representative.
According to her, IFC Technical Assistance in the development of the mortgage market is currently being implemented in two directions - the preparation of draft laws on mortgage bonds and on investment funds.
"After the law on mortgage bonds is adopted, we may work more closely in the future for the release of this financial instrument, said Azimova. The bill is currently still under development."