WB: Azerbaijan needs to change mortgage interest rates
Baku, Azerbaijan, Nov. 8
By Azad Hasanli – Trend:
The Azerbaijan Mortgage Fund OJSC will have to change interest rates on loans, Angela Prigozhina, the World Bank (WB) private and financial development sector leader, told Trend.
“Nowadays, when even the Central Bank of Azerbaijan increased interest rates [up to 15 percent since September 14, 2016], the Azerbaijan Mortgage Fund cannot issue loans to banks at 8 or 4 percent of interest rate per annum and will have to change the pricing policy,” she said.
Currently, the Azerbaijan Mortgage Fund offers two products: social and commercial mortgages, with the highest annual interest rates of 4 and 8 percent, respectively.
Prigozhina went on to add that the Azerbaijan Mortgage Fund needs to expand the sources of funding, study risks that appear on the market.
“All this requires adaptation and the development of new mortgage products,” said the expert, noting that the Azerbaijan Mortgage Fund and the WB currently work to create such products.