Azerbaijan, Baku, July 4 / Trend A.Akhundov /
Mortgage loans worth 43.8 million manat were issued through the Azerbaijan Mortgage Fund (AMF), acting under the Central Bank of Azerbaijan, in January-June 2011, the AMF said.
Since the beginning of funding by the AMF in 2006, mortgage loans worth 293.7 million manat was granted as of July 1, 2011.
Total amount of refinancing loans issued by banks earlier amounted to 33.4 million manat. Some 5.6 million manat out of 20 million manat envisaged in the 2011 state budget for financing the social mortgage has been issued since the beginning of the year.
Conventional mortgages are financed by funds from the placement of mortgage bonds. The AMF placed bonds worth 41 million manat in the first half of 2011.
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.
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.
The official exchange rate is 0.7868 manat to $1 on July 4.