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Azerbaijan’s largest bank may finance property purchases abroad

Business Materials 20 November 2013 20:10 (UTC +04:00)

Baku, Azerbaijan, Nov. 20

By Emin Aliyev - Trend:

The International Bank of Azerbaijan (IBA) intends to continue developing the mortgage portfolio, IBA Chairman Jahangir Hajiyev told Trend on Nov. 20.

"The volume of mortgage portfolio is now more than 60 million manats (approx. $76 million), and this growth will continue in the future. This is a real mortgage lending for 10 years at a rate of 12 per cent per annum," Hajiyev said.

In addition, the IBA chairman said the bank also does not rule out the possibility of developing and implementing mortgage programs for its customers abroad.

In early November, the IBA announced a joint project with the Turkish Akbank, including a mortgage program for the purchase of a luxury property in the Quasar complex in Istanbul.

"Similar projects will be possible in the future, of course, if there are demands from buyers," Hajiyev said.

The IBA was established in 1992 as the successor of the Azerbaijani branch of Vnesheconombank. The bank possesses a dominant position in the country's banking sector. The main shareholder of the IBA is the Azerbaijani government which possesses 50.2 percent of the company, while 49.8 percent belong to private legal and physical entities.

Official exchange rate for Nov. 20 is 0.7843 AZN/USD.

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