Ruble mortgage can be introduced in Azerbaijan by late 2015

Baku, Azerbaijan, Nov. 11

By Anvar Mammadov - Trend:

The mortgage lending in rubles can be introduced in Azerbaijan by late 2015, Tural Veliyev, director of the bank's retail business development department and member of its board of directors, told Trend on Nov. 11.

He said that the bank is currently awaiting a response from the head office in Russia concerning the interest rates for this product.

"All technical issues have been resolved," he said. "We completed working with our partners and settled the disputed points a few weeks ago. The only unresolved issue is the interest rate on the loan. As you know, the mortgage lending rates increased on the Russian market. But it is wrong to offer a mortgage loan at a rate of 20 percent in Azerbaijan. Our customers have become accustomed to the interest rate on the mortgage at a rate of 8-10 percent. So we are negotiating with our head office in Russia to receive a concessional resource at a low rate for its further sale on the local market. I think that we will get an answer before the end of the month."

"The loan will be issued for a period of 10 years," he said. "The initial payment will be at the rate of 20 percent, but there will be also some options."

"The initial payment, depending on the builder, will drop to 10 percent," he said. "Today, we already have the mortgage projects in manat. The initial payment and the interest rate is 10 percent. The loan is issued for 10 years."

Veliyev said that this project is one of the main objectives of the bank, but this product will not be massive.

"This is another option for the bank to offer it to the customers," he said. "This project will not have a large market share. But given that we have close relations with Russia and a great number of our fellow citizens live in Russia, I believe that this product will be in great demand."

"Moreover, according to the information received from our partner-builders, some 20-30 percent of all new apartments in Baku are bought by Azerbaijanis living in Russia," he said.

"We came to the conclusion that this product will be very interesting and beneficial for the customers residing in Russia and earning rubles. We already have several applications. Our builders did some work and provided us with a list of customers who would like to purchase a mortgage loan in rubles."

"Bank VTB (Azerbaijan)" is a subsidiary of "VTB Bank". The shareholders of "VTB Bank (Azerbaijan)" are "VTB Bank" and "AtaHolding". "Bank VTB (Azerbaijan)" renders the services to the corporate business, small business and private clients. Today the bank is represented by 14 subsidiaries and the Customer Service Office under the main service.

As of late September, the registered capital of the bank amounted to 50.82 million manat, total capital - 53.07 million manat. The bank's assets amounted to 369.96 million manat, the loan portfolio - 347 million manat and the deposit portfolio - 60.7 million manat for the third quarter.

The official exchange rate is 1.0504 AZN/USD Nov. 11.

Follow the author on Twitter: @Anvar_Mammadov

Uzbekistan’s Central Bank notes decrease of inflation rate
Uzbekistan’s Central Bank notes decrease of inflation rate
Uzbekistan GTL to buy pipes via tender
Uzbekistan GTL to buy pipes via tender
Russian airline receives permission to operate flights to Uzbekistan
Russian airline receives permission to operate flights to Uzbekistan
Loading Bars
Georgia opens 69-th online session of UN Economic Commission for Europe
World community must know about Armenian atrocities in Azerbaijan – French lawyer
PM Modi announces India-US partnership on climate, clean energy
Azerbaijan Airlines to start operating special flights to London
Building of Azerbaijan’s Mud Volcanoes Tourism Complex to look like crater from above
Strengthening confidence-building measures in Azerbaijan-Armenia relations most important - Russian MFA
Georgia publishes budget performance report of 1Q2021
French lawyers arrive in Azerbaijan’s Ganja city, shelled by Armenia during war (PHOTO)
EIB financing helped to launch 60 satellites into space in 2020
EIB likely to support dev’t of renewable energy sphere in Azerbaijan
Azerbaijan shares data on number of vaccinated citizens for Apr. 22
Azerbaijan confirms 2,047 more COVID-19 cases, 2,610 recoveries
Baku entitled to demand compensation from Armenia – Russian political analyst
IATA revises 2021 forecasts of world airlines losses
Azerbaijan to open tourism bureau in Israel
Belarus to supply components for Azerbaijan to assemble tractors in 2021
Several more Russian airlines allowed to operate flights to Baku
EIB exploring new project ideas to support digitalization across Eastern Partnership
SOCAR won't participate in sales of Antipinski Refinery’s property
NCOC talks Marine Access Channels Project plans at Kazakh Kashagan field
Azerbaijan's Aghdam in complete ruins - French lawyer
Uzbekistan’s Central Bank notes decrease of inflation rate
EAG working on assessing Turkmenistan's compliance with FATF recommendations
Uzbekistan GTL to buy pipes via tender
Kazakhstan’s KazTransOil to pay out dividends for 2020
Economy Ministry shares data on revenues from Azerbaijan's non-oil and gas sector
Turkmenistan elected member of Executive Board of UN Entity for Gender Equality, Empowerment of Women
Historical monuments in Azerbaijan's Aghdam vandalized - French criminal justice attorney
Kazakhstan’s KazTransOil decreases oil transshipment volumes in 1Q2021
Turkmenistan increases processing of agricultural products
Turkmen company exports tomatoes to Austria
Autoclave gas blocks plant construction launched in Kazakhstan's Turkestan
Azerbaijan's Nakhchivan launches new communication facilities in 1Q2021
Azerbaijan's Nakhchivan sees decrease in insurance portfolio for 1Q2021
Iran’s Bahar Azadi gold coin price again falling
Azerbaijan's Nakhchivan State Statistical Committee shares data on reconstruction of roads
Equinor to electrify over 35% of its total oil & gas output base by 2025
Russia leads among countries exporting goods to Azerbaijan
Iran’s CBI allocates funds for import of essential products
Output from Georgian Enguri HPP to increase after reconstruction - Director of Enguri HPP
Azerbaijan shares footage from Jabrayil's Shahverdili village (VIDEO)
Tesla opens Tel Aviv pop-up store
Russian airline receives permission to operate flights to Uzbekistan
Uzbekistan’s 3M2021 retail trade turnover of small business decreases
Number of bank accounts increases in Azerbaijan’s Nakhchivan
American Airlines loss narrows as travel demand picks up
Azerbaijan jointly with Russia sets up car manufacturing enterprise
Number of innovative companies worldwide grows
Kazakhstan boosts production of coal, some petroleum products
Swiss president heads for damage-control EU summit
Etihad Airways to stop operating Boeing 777-300ER jets this year
Installation of info boards on roads leading to Azerbaijan's liberated lands continues (VIDEO)
French human rights activists visiting Azerbaijan's Aghdam (PHOTO)
Georgia increases imports of tomatoes from Azerbaijan
Israeli airline to organize charter flights to Uzbekistan’s Tashkent
Kazakh president points out need to timely oversee major oil projects
US must choose between real ally Ankara and fictional history - Turkish presidential administration
Kazakhstan's trade with Italy down
Uzbekistan boosts import of electric cars
Azerbaijan names winner of auction for right to develop clay field in Goygol
Azerbaijan implementing "Smart Grid" concept in Sugovushan settlement (VIDEO)
Кazakh Electricity Grid Operating Company to buy spares via tender
Uzbekistan exports dried fruits to Malaysia through Turkey
Area of agricultural land in Iran equipped with modern irrigation systems growing
ADB introducing blockchain-based food tracking project in Azerbaijan
Iran reveals COVID-19 data for April 22
Azerbaijan publishes 1Q2021 data on lending to economy
Azerbaijan clears Sugovushan, Talyshkend from mines for construction of power transmission lines (PHOTO)
Several facilities put into operation in Iran's agricultural sector
Azerbaijani president, first lady attend ceremony of laying foundation of Mud Volcanoes Tourism Complex (PHOTO)
Georgia exports ignificant number of tractors, trucks to Azerbaijan
International revenue of Halliburton up amid increased software sales
Iran launches implementation of project on Cheshmeh Khosh oil field
Halliburton sees decrease in operating income
Azerbaijani banks' demand for foreign currency exponentially up
Turkmenistan increases production of vegetables, berries
Uzbek-Korean JV announces tender for consumables
Earth Day 2021: An unprecedented opportunity to restore our Earth
Azerbaijan's Nakhchivan launches work on industrial projects in 1Q2021
Georgia reports 1,226 new cases of coronavirus for April 22
Turkey says France boosts import of domestic cars
Armenia commits provocations on state border with Azerbaijan
UAE's Universal Tubes and India's Tata in world's first blockchain-led trade finance for steel
Cargo transportation at Turkey's Adana airport reduces
Georgian wine exports to Azerbaijan see growth
Uzbekistan’s passenger cars production down in 1Q2021
Value of Turkey's grains, legumes export to Uzbekistan spikes in Mar.2021
Armenia planted plastic mines in liberated Sugovushan village - Azerbaijan's Mine Action Agency (VIDEO)
Russian GDP growth outlook downgraded to 2.9% for 2021
Inflation rate in Iran increases
Renault revenue falls for fifth quarter in a row
Turkey's 1Q2021 chemicals exports to Russia increase
Azerbaijani ministry appoints acting general director of Aztelekom LLC
Karabakh agreement - very important step in protection of human rights - German MFA
Georgian beer exports to Azerbaijan up
Turkmen carpet-making enterprise publishes production data for 1Q2021
ADB initiating program to support SMEs in Uzbekistan
Iran supplies agricultural machinery to farmers
Interconnections to increase Bulgaria’s gas market capacity by 10 bcm
Volume of loaded, unloaded cargo in Iranian ports decreases
All news