Azerbaijan, Baku, July 15 /Trend, I.Khalilova/
The World Bank will send a mission to Baku to clarify the possibilities for cooperation with the Azerbaijan Mortgage Fund under the Central Bank, the WB Baku office said on Friday.
"The mission headed by the coordinator of financial projects in Azerbaijan Michael Edwards will arrive in Baku July 24 to consult and study the needs of the Mortgage Fund for technical assistance or investment loan," the office said.
During the visit, the WB mission will gather information to identify areas of future cooperation with the AMF. The work in this direction can take several months, after which the issue of necessity to provide assistance will be decided.
"In previous missions, the World Bank also addressed the issues of cooperation with the AMF, but the current mission is first directed specifically for this purpose and for a deeper study of this issue," the same source said.
International Finance Corporation (IFC is part of the WB) has already provided support to the Azerbaijani government to improve legislation in the field of mortgage lending.
It is very important to have proper and effective mortgage legislation to develop the mortgage market. Improving the system will contribute to improving mortgage loan conditions, increasing their volume and improving living standards. Therefore, the IFC has conducted a seminar for interested parties to discuss the necessary changes to the legislation and global best practices.
"Countries with the strongest laws in this area, on the one hand, provide for the sale of mortgage objects to compensate for losses in the borrower's default, and, on the other hand, alienate the property from the borrower only when absolutely necessary," IFC Project Manager Victor Mints said earlier.
The Mortgage Market Development Project has been implemented in Azerbaijan since 2005 in an attempt to develop the primary mortgage market in the country. The project consists of three main components - the improvement of legislation in the area of mortgage lending, institutional capacity building in mortgage lending and increasing awareness in this area.