Baku, Azerbaijan, Nov. 7
By Emin Aliyev - Trend: Around 456 million manat has been raised to finance 12,860 loans delivered through the Azerbaijan Mortgage Fund (AMF) under the Central Bank of Azerbaijan (CBA) since its establishment, an AMF statistics report said on Tuesday.
Around 176 million manat (39 per cent of the total volume) of these funds were used to finance the social mortgage and 280 million manat, the conventional mortgage.
As of October 18, the volume of refinanced mortgage loans amounted to 402.12 million manat. Around 16.8 per cent or 67.41 million manat fell to the preferential mortgage.
The authorised banks have issued 12,862 mortgage loans, 82.06 per cent of which were refinanced since the beginning of MF activity.
The table below shows the Azerbaijani top 10 banks in terms of issued refinanced mortgage loans accounting for 76.6 per cent.
|
Bank name: |
Loans: |
|
Demirbank |
976 |
|
Zaminbank |
948 |
|
Xalq Bank |
914 |
|
Bank Standard |
907 |
|
AG Bank |
881 |
|
Bank Technique |
878 |
|
Muganbank |
810 |
|
Unibank |
700 |
|
Bank Respublika |
663 |
|
Kapital Bank |
410 |
|
Total: |
8 087 |
Currently, the maximum amount of a common mortgage loan through the AMF is 50,000 manat at a rate of eight per cent with a payback period of 25 years. Terms under the social mortgage are 50,000 manat at an annual rate of four per cent with a payback period of 30 years. The initial payment under the social mortgage is 15 per cent, whilst the conventional loan is 20 per cent.
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 per cent of the market price and the monthly payment must not exceed 70 per cent 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 and 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 31 authorised banks belonging to the Mortgage Fund. Around 21 insurance companies and 11 appraisal organisations are participants of the mortgage market.
The official exchange rate is 0.7843 AZN/USD on Nov. 7.