Azerbaijan, Baku, Dec. 12 / Trend A. Akhundov /
The Azerbaijan Mortgage Fund (AMF) under the auspices of the Central Bank of Azerbaijan (CBA) will draw additional resources to meet the country's needs for mortgages, the CBA chairman Elman Rustamov told media today.
"This year, the amount allocated for mortgages, increased," he said. "However, we will seek additional funds. The matter does not rest at the 20 million manat, allocated by the state for social mortgages. The banks also issue mortgage loans through their product lines. This area attracts substantial income from the market by placing mortgage bonds. We will seek additional resources to meet the country's needs in the mortgage next year."
He said that the banks are attracting funds from international financial institutions as part of their mortgage programme. "We hope that certain actions will be taken in this area next year," Mr Rustamov said adding that currently around 100,000 qualify for a social mortgage.
"If we take into account that the maximum amount of a loan on the social mortgage is just 35,000 manat, it means that 20 million manat will be sufficient to provide 600 people with mortgage loans," Mr Rustamov said. "The banks have already registered requests for a social mortgage worth 80 million manat. People want to use the system and are waiting for the money."
He added that it is possible to alleviate the shortage of the social mortgage. According to the AMF's terms, the maximum amount of the loan on conventional mortgage in Azerbaijan is 50,000 manat at a rate of eight per cent over 25 years, but the amount in the social mortgage is 35,000 manat, at an annual rate of four per cent over a period of 30 years through the Azerbaijani Mortgage Fund under the Central Bank.
The initial fee for a social mortgage is 15 per cent, whilst ordinary loans are 20 per cent.
The official exchange rate is 0,7864 AZN/USD on Dec. 12.