Baku, Azerbaijan, Oct. 31
By Anvar Mammadov – Trend:
As of October 1, 2017, 29.8 percent of all mortgage loans in Azerbaijan were issued on preferential terms, raeds a report of Azerbaijan Mortgage Fund (AMF) published Oct. 31.
Since the beginning of the AMF’s activity in 2006, a total of 5,983 preferential mortgage loans have been issued in Azerbaijan, and 1,000 of them were issued in 2017, according to the report.
Securities issued by the AMF are the main source of mortgage financing in Azerbaijan. They accounted for 590 million manats (62.4 percent) of all raised funds in the third quarter of 2017. The remaining 356 million manats (37.6 percent) were allocated from the state budget.
In the reporting period, the refinance volume of mortgage loans reached 766 million manats, 225 million manats of which were directed to social mortgage.
Top 5 cities of Azerbaijan on the acquisition of mortgage loans (at the end of the third quarter of 2017):
|
City |
Number of mortgage loans |
|
Baku |
15,236 |
|
Sumgait |
2,040 |
|
Absheron/Khirdalan |
1,296 |
|
Ganja |
777 |
|
Nakhchivan |
237 |
In total, 19,601 mortgage loans totalling 830.35 million manats have been issued by authorized credit institutions of the AMF since 2006.
In line with the procedure approved in June 2016, mortgage loans are issued only to citizens of Azerbaijan and only in the national currency – Azerbaijani manat.
Interest rates on conventional mortgages should not exceed eight percent and preferential mortgage loans – four percent per annum.
The maximum mortgage loan amount is determined by the AMF. The monthly payment for a mortgage loan should not exceed 70 percent of the monthly income of a borrower.
(1.7002 manats = $1 on Oct. 31)