Azerbaijan, Baku, Oct.13 / Trend, I.Khalilova, N.Ismayilova /
Within two years, population's deposits in Azerbaijani banks grew by more than 60 percent, chairman of the Central Bank of Azerbaijan (CBA) Elman Rustamov said on Tuesday while discussing the draft 2011-state budget at a plenary session of the parliament.
"Although the world economy experienced a crisis period, the Azerbaijani banks have fulfilled all obligations before clients," Rustamov said. "Population's deposits, the main indicator of banking sector, increased in 2009 by 29 percent, within nine months of 2010 - by 22 percent and the cumulative growth hit over 60 percent," he added.
He said within two years the banking sector's assets grew by 18 percent and the amount of loans allocated by banks by more than 20 percent.
"Mortgage mechanism also expands, during the year 1,855 families received mortgage loans worth 73.7 million manat through the Azerbaijan Mortgage Fund (AMF), while 418 families received social mortgage loans totaling 14 million manat," he said .
The mortgage loans are issued through 20 authorized banks.
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.
The commercial mortgage is funded by proceeds from the placement of the fund's mortgage bonds. The state budget finances only a social mortgage. 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.
The AMF was established in December 2005. 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 20. To date, the AMF banks-agents issued mortgage loans worth 225.7 million manat.
Oct.12, official exchange rate is 0.8020 manat to $1.