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Civil servants get almost 40% of mortgage loans in Azerbaijan

Business Materials 24 October 2014 17:36 (UTC +04:00)
Around 39.5 percent of the total amount of loans issued through the Azerbaijan Mortgage Fund (AMF) accounted for the citizens engaged in the public sector, the AMF statistics report as of the first nine months of this year says.
Civil servants get almost 40% of mortgage loans in Azerbaijan

Baku, Azerbaijan, Oct. 24

By Maksim Tsurkov - Trend:

Around 39.5 percent of the total amount of loans issued through the Azerbaijan Mortgage Fund (AMF) accounted for the citizens engaged in the public sector, the AMF statistics report as of the first nine months of this year says.

The employees of private enterprises and firms (23.3 percent) rank second.

The employees of the financial sector received less mortgage loans (21.5 percent of the total volume).

Around 15.8 percent of the mortgaged housing accounted for the citizens employed in the oil sector of the economy.

The loans amounting to 23.28 million AZN were issued through the AMF in January-September 2014. This increased the total volume of housing financing to 613.89 million AZN. The total number of borrowers who received mortgage loans reached 15,425 people.

The total amount of refinancing the loans issued by the banks earlier was 525.28 million AZN.

Around 216 million AZN were allocated from the state budget to finance social mortgage. As of October 1, 2014, around 3,216 loans worth 115.3 million AZN were issued on preferential terms.

As of October 1, 2014, the loans amounting to 410.01 million AZN were issued through the AMF as part of conventional mortgage. The conventional mortgage is delivered from the funds raised from the placement of mortgage bonds.

The maximum amount of a conventional mortgage through the AMF is 50,000 AZN at a rate of 8 percent and a maturity of 25 years. The amount of a social mortgage is 50,000 AZN at an annual rate of 4 percent and the term of 30 years. The initial payment under the social mortgage is 15 percent, while for a conventional loans - 20 percent.

Mortgage terms are as follows: loans must be issued in national currency, AZN, and only to the citizens of Azerbaijan, the subject of the mortgage can only be an apartment or private house, the amount of the mortgage should not exceed 80 percent of the market value of the property, the monthly payment for a loan must not exceed 70 percent of monthly income of the borrower, the presence of an agreement on life insurance and other conditions.

Preferable conditions are granted to members of families of war victims, families of National Heroes of Azerbaijan, internally displaced persons, civil servants with at least a three years' experience, candidates and doctors of science, persons making special contributions to sport, as well as the military with at least a three-year service term. Each family having the right to such a mortgage loan can use the opportunity only once.

Today the authorized banks of the AMF are 28 banks. The participants of the mortgage market are also 21 insurance companies and 15 appraisal organizations.

The official exchange rate is 0,7843 AZN/USD Oct. 24.
edited by CN

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