Russian bank expands sources of financing in Azerbaijan

Business Materials 11 June 2015 14:21 (UTC +04:00)

Baku, Azerbaijan, June 11

By Anvar Mammadov - Trend:

Bank VTB (Azerbaijan) plans to join the Azerbaijan Mortgage Fund (AMF) before the end of June, director of the Department of Retail Business Development of the bank Tural Valiyev told reporters.

"We're going to become the authorized agent of the Mortgage Fund by the end of June," Valiyev said, noting that the bank plans to start issuing mortgage loans through the fund the beginning of 2016. "The draft agreement and the consent of the AMF have been already received."

Although, he said that given a favorable scenario, the bank can proceed with the issuance of mortgage loans already in September 2015. Until now, the bank was issuing mortgages under its own program.

In order to improve access to local sources of financing, the Bank VTB (Azerbaijan), which currently finances mainly at the expense of VTB Group, plans also to become the authorized agent of the National Fund for Entrepreneurship Support (NFES) under the Ministry of Economy and Industry of Azerbaijan. The bank will begin lending through the National Fund in late July-early August.

AMF was established December 2005 and began to issue mortgage loans in March 2006. In total, since the beginning of funding, AMF granted 16,855 mortgage loans worth 678.7 million manats, including 87.15 million manats in 2014, 112.9 million manats in 2013, 74.77 million manats in 2012, 95.64 million manats in 2011, 97.08 million manats in 2010, 76.9 million manats in 2009, 70.2 million manats in 2007, 5.6 million manats in 2006.

At present, the authorized banks of the Mortgage Fund are 30 banks [some 45 banks operate in the country].

NFES was established in 1992. The issuance of loans to entrepreneurs is implemented through authorized banks and non-bank credit organizations, whose total number is 45.

Bank VTB (Azerbaijan) OJSC is a subsidiary of VTB Bank OJSC. The shareholders of VTB Bank (Azerbaijan) are Bank VTB OJSC and AtaHolding OJSC.

Bank VTB (Azerbaijan) OJSC renders services to clients of corporate business, small business and private clients. Today, the bank has 14 branches and an office of customer service at the head office.

Edited by CN


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