TOP 10 Azerbaijani banks in mortgage lending in first quarter

Business Materials 24 April 2014 17:11 (UTC +04:00)

Baku, Azerbaijan, April 24

By Ilaha Khalilova - Trend:

Azerbaijan's authorized banks have issued 14,236 mortgage loans since the beginning of the Azerbaijan Mortgage Fund's (AMF) activity under the Central Bank. Some 2,651 loans were issued as part of the social mortgage.

The table shows the top 10 Azerbaijani banks in terms of the number of issued refinanced mortgage loans.

Name of bank:

Number of loans:

AG Bank




Bank Standard


Xalq Bank




Bank Technique






Bank Respublika


Ata Bank



8 482

In the first quarter of 2014, the Azerbaijan Mortgage Fund (AMF) under the Central Bank delivered loans amounting to 25.85 million manats. This increased the total volume of housing finance to 456.75 million manats.

The total amount of refinancing the loans issued by the banks previously amounted to 14.83 million manats in the first quarter. AMF has placed bonds worth 315 million manat since the beginning of the mortgage lending.

Some 186 million manats were allocated from the state budget to finance the social mortgage.

Some 266 loans worth 11.02 million manats were issued at the preferential terms in the first quarter in the first quarter.

Currently, the maximum amount of a common mortgage loan through the AMF is 50,000 manats at a rate of eight percent with a payback period of 25 years. Terms under the social mortgage are 50,000 manats at an annual rate of four percent with a payback period of 30 years. The initial payment under the social mortgage is 15 percent, whilst the conventional loan is 20 percent.

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 percent of the market price and the monthly payment must not exceed 70 percent 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 authorized banks belonging to the Mortgage Fund. Around 21 insurance companies and 11 appraisal organizations are participants of the mortgage market.

The official exchange rate is 0.7843 AZN/USD on April 24.

translated by NH

edited by CN