CBA considers private investors’ involvement in mortgage system strategically important

Business Materials 27 December 2013 20:07 (UTC +04:00)

Baku, Azerbaijan, Dec. 25

By Emin Aliyev - Trend:

Private investors' involvement in the mortgage lending system in Azerbaijan for extension of long-term financing is of strategic importance, according to a statement from the Central Bank of Azerbaijan on the main directions of monetary policy and financial stability in 2014.

"The measures aimed at meeting the population's growing need in housing and expansion of possibilities to purchase housing on mortgages with favorable long-term conditions will be continued within the new strategy. Development and implementation of various effectively integrated forms of housing provisions that are based on international best practice, will be taken into account in this area," CBA said.

Moreover the CBA said the partnership between state and private sectors is an important factor for improving the provision of affordable and quality housing.

"On the other hand, it is possible to form new alternative and complementary funding sources through the use of the population's savings. In this regard, it is a priority to develop the country's construction and savings banks on the basis of the global experience model," according to the CBA's statement.

According to the CBA's data, the volume of loans granted with the resources of the Azerbaijan Mortgage Fund and commercial banks hit 750 million manats ($956 million).

"Throughout 2013 the volume of mortgage loans increased by 35 percent, including preferential mortgages - by 33 percent," CBA said.

Official exchange rate for Dec. 25 is 0.7845 AZN / USD.