Azerbaijan allocates funds to finance social mortgage

Business Materials 10 September 2016 15:43 (UTC +04:00)

Baku, Azerbaijan, Sept. 10

By Anvar Mammadov – Trend:

Azerbaijan’s state budget allocated 5.1 million manats in July 2016 through the line of the country’s Mortgage Fund (AMF) to finance the social mortgage against 5.3 million manats in July 2015, according to the report of the Central Bank of Azerbaijan (CBA).

The official exchange rate for September 10 is 1.6403 AZN/USD.

The total volume of the loans’ refinancing issued by banks earlier was 1.2 million manats.

In the current year, the Azerbaijani state budget already provided 28.2 million manats for social mortgage. In general, 50 million manats are envisaged for these purposes in the state budget in 2016.

During July, as in the previous two months, Azerbaijani banks didn’t issue any residential mortgage loan, while for the same period of 2015, the volume of mortgage lending in July, June and May of 2016 totaled 65.2 million manats, 56.5 million manats and 47 million manats, respectively.

During the reporting period, placement of mortgage bonds wasn’t carried out, either. The suspension of mortgage lending is associated with the reorganization of the AMF, the fund will continue issuing loans after the approval of the relevant legal acts.

The average monthly amount of the loan issued by the authorized banks of the AMF amounted to 40,882 manats in July 2016 (this figure amounted to 40,697 manats in July 2015).

The average period for which the loan is issued is 280 months (279.7 months), the average annual interest rate is 6.7 percent (6.72 percent a year earlier), and the average amount of payments is 296.1 manats (297.5 manats).