Azerbaijani bank plans to develop its own mortgage programme

Business Materials 14 September 2012 15:52 (UTC +04:00)

Azerbaijan, Baku, September 14 / Trend A. Hasanov /

Azerbaijani AGBank plans to develop its own mortgage programme, a spokesperson told Trend.

"We plan to develop own self-funded mortgage programme and its implementation is likely to begin next year" the bank said.

Today, the bank makes loans in the frame of the social mortgage allocated to the Azerbaijan Mortgage Fund under the Central Bank, of fewer than four per cent per annum, the maximum amount of which is 35 manat.

The bank noted that the current year was not very successful in the field of mortgage lending.

"If we compare the number of mortgage loans in 2009, the figure this year is three times less," the bank said.

AG Bank was founded in 1992. Currently the bank has 17 branches, six departments and 55 ATMs in the cities of Baku, Sumgayit, Ganja, Yevlakh, Barda, Goychay, Shamakhi, Shirvan and Salyan. The bank's shareholders are: the International Finance Corporation with 17.5 per cent and an American investment fund Kazimir Investment LTD, 10 per cent. The total number of minority shareholders is equal to 69 and their total share capital of the bank is 31.81 per cent. Another two individuals have a stake in 40.69 per cent.

Official exchange rate on Sept 14 is 0.7853 AZN/USD