Azerbaijan aims at cautious policy in increasing budgetary expenditures for mortgage
Azerbaijan, Baku, Nov 24 /Trend I.Khalilova/
Azerbaijani Finance Ministry does not consider it possible to allocate about one billion manat to cover the needs of 25,000 families in the social mortgage every year, said Samir Sharifov the Minister of Finance in Parliament during the discussion of the draft state budget for 2012 and the next three years
"We should responsibly approach to the issue of a 50 times increase in budget expenditures on social mortgage on an annual basis, since, in addition to inflationary concerns, the principal is the sustainability of such funding," Sharifov said.
By draft state budget of Azerbaijan to 2012, 20 million manat will be allocated on social mortgage, as in 2011. These tools allow you to give out loans to about 500-600 families.
According to Sharifov the financial problems in many countries started from the mortgage market as mortgage loans have been allocated in large volumes. And the problems in Greece, as well as in many other European countries are connected with the cheap mortgages issue.
"The state can't fund on a continuous basis in such quantities and at low rates over 20 years [to issue a mortgage loan]. From this point of view, we should be very cautious about increasing budget expenditures to finance social mortgage," Sharifov said.
However, Sharifov supports the provision of certain benefits and help young families to solve housing problems.
According to the current conditions, in Azerbaijan, the maximum amount on the social mortgage is 35,000 manat at the rate of four per cent per year, and the usual mortgage is 50,000 manat at the rate of eight per cent.
The official exchange rate on Nov 24 is 0.7865 AZN / USD.