International Bank of Azerbaijan notes increase in demand for mortgage loans

Business Materials 16 November 2012 20:09

Azerbaijan, Baku, Nov 16 /Trend A.Akhundov/

International Bank of Azerbaijan (IBA) observed a great demand for services under its own mortgage program, IBA Chairman of the board Jahangir Hajiyev told reporters on Friday.

"We see great potential in this field in Azerbaijan, and the demand for services of our bank. We provide mortgage loans, mainly to employees of large companies" Hajiyev said.

If IBA financed mortgage loans worth 6.6 million manat under the Azerbaijan Mortgage Fund last year, then it sent 7.6 million manat to finance a home purchase under its own mortgage program.

Hajiyev noted that the situation with the quality of assets and loan portfolio in the bank is good.

"The level of redundancy in the bank is good, it even exceeds the requirements of the auditor by 50-60 million manat, which shows the quality of assets and loan portfolio," Hajiyev said.

IBA was established in 1992 as the successor of the Azerbaijan branch of "Vnesheconombank". IBA has a dominant position in the banking sector. The state share in the authorized capital of the bank is 50.2 percent, the remaining shares are distributed among private legal and physical entities.

Official exchange rate on November 16 is 0.7848 AZN/USD.