Growing number of problem loans hasn’t affected mortgage lending

Business Materials 19 August 2017 11:10 (UTC +04:00)

Baku, Azerbaijan, Aug. 19

By Anvar Mammadov – Trend:

The share of problem loans in the total loan portfolio of Azerbaijan Mortgage Fund OJSC is only 0.01 percent, the Fund told Trend.

According to the Fund, this figure is significantly lower than in other organizations across the country, as well as in portfolios of similar mortgage organizations in foreign countries.

It should be noted that, the total volume of overdue loans in the country at the end of 2016 amounted to 1.42 billion manats (increased by 12.2 percent during the past year) with a specific weight of 8.9 percent. The total portfolio of loans of Azerbaijani credit organizations amounted to 16.44 billion manats, according to the results of 2016.

Meanwhile, there are loans with overdue payments of more than 90 days, said the Fund.

“As for loans, payments for which are overdue for up to 90 days, the unpaid amount for them is only 50,300 manats,” noted the Fund.

The clients facing problems in repayment of debts may apply to the Fund for loan restructuring.

“We can extend the terms of loans or reduce the interest rate on loans at the expense of an authorized bank servicing this loan,” said the Mortgage Fund.

From 2006 to date, authorized credit institutions of the Mortgage Fund have issued 19,601 mortgage loans with the total value of 830.35 million manats.

Twenty-four out of 31 banks, 17 out of 22 insurance companies and 13 appraiser organizations of the country are the authorized credit institutions of the Azerbaijan Mortgage Fund.