List of Azerbaijan Mortgage Fund agent banks expands
Azerbaijan, Baku, Nov. 10 /Trend, I.Khalilova/
Azerbaijani Bank of Baku became the 21st agent bank of the Azerbaijan Mortgage Fund (AMF) under the country's Central Bank, said the chairman of the bank Jalal Gasimov.
"The Bank became the agent of the Mortgage Fund, and financing will soon be opened for our bank," said Gasimov.
According to him, before the suspension of mortgage loans in the summer of 2007, Bank of Baku was in the list of members of the AMF, but after resumption in June last year, the bank did not resume mortgage lending within the AMF. Then the mortgage portfolio was formed in amount of 2 million manat, and so far the delays did not happen in loan repayment.
Back can start lending within 7-10 days, Gasimov said.
"By the end of the year, we plan to place a maximum of 500,000 manat, and for next year, the mortgage lending depends on negotiations with the Fund to open the limit," Gasimov said.
AFB Bank and KredoBank were the latest agent-bank of the AMF. Currently, AMF agents are also 16 insurance and 10 appraisal companies.
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
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.
Bank of Baku was established in 2005 as a result of merger of two local private banks - JSC "Bank of Baku" and CB "IlkBank". Currently the bank has five shareholders - three businesses and two individuals.
The commercial bank "Tugay passed the state registration Feb.14, 1994. Then, it was renamed to the Commercial Bank Feb. 10, 1997. The bank also changed its legal form of organization - Bank of Baku has passed re-registration as a joint stock commercial bank Aug.27, 1997 and received legal status of open joint stock company Oct.22, 2004.
The National Bank of Azerbaijan officially confirmed the merger of two banks Jan.26, 2005. JSC "Bank of Baku" received a license to conduct banking operations Feb.18, 2005.
The official exchange rate is 0.8 manat to $1 Nov. 10.
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