Azerbaijan, Baku, Jan. 5 / Trend N.Ismayilova /
Loans amounting to 95.9 million manat were issued in 2010 through the Azerbaijan Mortgage Fund (AMF) of the Central Bank, the AMF said.
The total amount of refinancing of loans previously issued by banks was 90.5 million manat. Some 14 million manat built into the budget for 2010 for financing of social mortgages had been already allocated. In 2010, it was placed in AMF mortgage bonds in the amount of 81 million manat.
Some 72 percent of total loans (41 percent of borrowers were aged 18-29, 31 percent were aged 30-35) fall to young people and young families. Some 28 per cent of loans fall to borrowers over 36 years-old.
The maximum single loan available through the fund is 50,000 manat for a term of 3 to 25 years.
Terms of mortgage lending by the fund acting under the aegis of the Azerbaijani president are as follows: loans must be given in manat and only to Azerbaijani citizens; mortgages may be granted for apartments and private house; the amount of mortgage loans must not not exceed 85 percent of the market value of the mortgaged property; the monthly payment for a loan should not exceed 70 percent of the monthly income of the borrower; the amount of life insurance should not exceed the size of the mortgage loan.
The Azerbaijani mortgage fund of the Azerbaijani Central Bank resumed administering loans in 2009 after suspending activity in summer 2007 because of a lack of funds.
The official exchange rate is 0. 7977 manat to $1 Jan. 5.