Azerbaijan, Baku, Feb. 21 / Trend, I. Khalilova /
The Azerbaijan Mortgage Fund (AMF) under the Central Bank of the country has signed a contract with the international auditing company "KPMG Azerbaijan Limited" to audit financial accounting as of 2012-2014, AMF said on Wednesday.
The loans at the amount of 74.77 million manat, or more than $95 million were delivered through the fund in 2012. Last year the total amount of refinancing the loans given by the banks earlier hit 91.15 million manat. During the year, the AMF placed bonds at the amount of 36 million manat.
Mortgage loans worth more than 420 million manat were delivered in 2006-2012 through AMF (95.64 million manat - in 2011, 97.08 million manat - in 2010, 76.9 million manat - in 2009, 70.2 million manat - in 2007, 5.6 million manat - in 2006).
Currently the maximum amount of a common mortgage loan through the AMF is 50,000 Manat at a rate of 8% with a payback period of 25 years. Terms under the social mortgage it is 35,000 Manat at an annual rate of 4% with a payback period of 30 years. The initial payment under the social mortgage is 15%, whilst the conventional loan is 20%.
Conditions of mortgage lending are as follows; loans must be issued in Azerbaijani Manats and only to Azerbaijani citizens and the mortgage can only be for an apartment or private house.
The volume of mortgage lending must not exceed 80% of the market price and the monthly payment must not exceed 70% of the debtor's monthly income. It is compulsory to take out an agreement on life insurance.
Preferential conditions are granted to family members of war victims, national heroes, internally displaced persons, civil servants with at least a three years' experience, PhDs, those making special contributions to sport as well as to the military with at least a three-year service term. Each family having the right to such a mortgage can only use the opportunity once.
There are 27 authorized banks belonging to the Mortgage Fund, 21 insurance companies and 12 appraisal organizations, all are participants of the mortgage market.
The official exchange rate on Feb. 21 is 0.7848 AZN/USD