Limitedness of long-term resources hinders Azerbaijani bank to start own mortgage program
Azerbaijan, Baku, July 16 /Trend A.Akhundov/
Azerbaijan OJSC AtaBank is not going to launch own mortgage program, Deputy Chairman of the Board Museib Aliyev told Trend on Monday.
"It is too early to talk about own mortgage program due to high cost of borrowed funds in Azerbaijan and limitedness of low cost resources. If there are sources of cheap long-term financing, we will be able to launch own program," Aliyev said.
He noted that today the portfolio of funds borrowed from abroad remains zero.
"There is no need to attract funds from abroad yet," Aliyev said.
He noted that today the bank issued 352 mortgage loan for a total of about 15 million manat.
"AtaBank is an authorized agent bank of Azerbaijan Mortgage Fund, and today continues to issue regular mortgages. Mortgage portfolio amounts to 14.942 million manat, the total number of loans - 352. Of these 27 loans totaling 892.7 thousand manat were issued under the social mortgage," Aliyev said.
Currently, the bank made full use of the credit limit under conventional mortgages, and therefore appealed to the fund for the receipt of additional funding. However, lending under social mortgage proceeds, Aliyev said.
AtaBank has been successfully operating since 1993. It is one of the largest commercial banks in Azerbaijan. The main shareholder is AtaHolding, which owns 76 percent of its shares.
Official exchange rate on July 16 is 0.7855 AZN/USD