Azerbaijan, Baku, May 3 / Trend A.Akhundov /
The Central Bank of Azerbaijan (CBA) is in talks with the government and the banking sector on the development of a major project to provide affordable housing in the country, chairman of the Central Bank of Azerbaijan (CBA) Elman Rustamov told reporters.
"We have to increase funding under commercial mortgages and perhaps social mortgages as well. However, it is not an endless process. The main thing is to increase the market supply of cheap housing so that it is possible to purchase decent housing through a mortgage loan. Businesses, government and the banking community should be thinking about the ways to implement it," Rustamov said.
According to him, the availability of low-cost, affordable, renovated housing in the country is very important, especially for young people. Alongside, it is a very difficult issue.
"We will increase funding for commercial mortgages. We have the opportunity this year to increase borrowing from the market at the expense of bonds," Rustamov said.
In addition, he said an increase in the maximum amount of commercial mortgage provided by the Azerbaijan Mortgage Fund is possible this year.
Currently, the maximum amount for both a conventional and social mortgage is 50,000 manat. A conventional mortgage loan can be obtained at the rate of eight per cent and at maturity period of 25 years, whereas soft loan is at a rate of four per cent for 30 years. Under the terms of the AMF, the initial payment under the social mortgage is 15 per cent, while for conventional loans it is 20 per cent.
The official exchange rate on May 3 is 0, 7845 AZN / USD.