Azerbaijan, Baku, Feb. 16 /Trend, N.Ismayilova/
Azerbaijan will significantly simplify the process of obtaining mortgage loans, said the head of the Association of Banks of Azerbaijan (ABA) Eldar Ismayilov.
"Preparations are under way to accelerate the preparation of documents, all the bureaucratic processes will be simplified. If the trials previously delayed indefinitely, now these procedures will be completed within six months," said Ismayilov.
According to him, the Central Bank of Azerbaijan has already prepared a proposal to simplify the process and soon they will be submitted to the government.
"The E-mortgage project, developed by the Central Bank, would also accelerate and simplify the process of obtaining mortgage loans," he said.
On Friday, the Central Bank of Azerbaijan (CBA) held a meeting with the Association of Banks of Azerbaijan, National Confederation of Entrepreneurs, the banking sector and the business community to discuss topical issues. As the results of research indicate, there is high demand for mortgage loans, and this mechanism should be expanded, and the financial possibilities of the domestic market should be used for this. The credit applications of citizens will be considered timely, bureaucracy must be eliminated, costs must be minimized.
The International Finance Corporation (IFC) estimates the potential amount of the mortgage market in Azerbaijan at $6.4 billion.
At present, the total mortgage portfolio of the banking sector in Azerbaijan is higher than 300 million manat, 50 million manat of which the banks have provided through their own funds.
Last year, high activity was also observed in the mortgage market. About 500 families received preferential loans in amount of 14 million manat. So far the Azerbaijan Mortgage Fund (AMF) under the Central Bank has issued 250 million manat to over 6300 families.
The official exchange rate is 0.7954 manat to $1 Feb. 16.