Average period of loan grows in Azerbaijan

Baku, Azerbaijan, Dec. 12

By Anvar Mammadov – Trend:

Azerbaijan Mortgage Fund (AMF) issued loans worth 18.6 million manats in October 2017, according to the report of the Central Bank of Azerbaijan (CBA).

The issuance of mortgage loans was suspended in the same period last year due to the restructuring of the AMF.

According to the CBA report, in October 2017, the volume of refinancing of loans issued by banks earlier amounted to 14.4 million manats. Since the beginning of the year, 40 million manats has been transferred from the state budget to the AMF.

The average monthly amount of the loan delivered by the AMF’s authorized banks was 43,915.1 manats in October 2017 (40,882.6 manats in October 2016). The average period of the loan is 281 months (280 months a year earlier). The average annual interest rate is 6.64 percent (6.7 percent a year earlier). The average monthly amount for payments is 313.5 manats (295.7 manats a year earlier).

In general, AMF’s authorized lending institutions have issued 20,859 mortgage loans worth 915.14 million manats since 2006 and up till now.

According to the new mortgage loan issuance order, approved in June 2016, an ordinary mortgage loan will be issued only to Azerbaijani citizens and only in the national currency for a term from 3 years to 25 years, while preferential mortgage - up to 30 years to purchase a house, owned by the citizen. Interest rates on conventional mortgage must not exceed eight percent, while 4 percent per annum in preferential mortgage loan.

The maximum amount of the mortgage loan (including preferential) is determined by Azerbaijan Mortgage Fund JSC and must not exceed the cost of repaired housing with an average of 100 square meters in zone #7 in Baku. Annual interest rates on the loan are determined by the company’s Supervisory Board.

The amount of preferential mortgage loan must not exceed 85 percent of the cost of purchased housing by the date of the loan issuance, except for cases when a borrower appeals to decrease the loan amount. The amount of conventional mortgage loan must not be less than 75 percent and more than 85 percent of the cost of purchased housing by the moment of the loan issuance, except for the cases when a borrower appeals to decrease the loan amount.

The monthly payment for a mortgage loan must not exceed 70 percent of a debtor's monthly income. The age of the borrower must not exceed the retirement age according to the legislation. An agreement on life insurance is required.

The family members of war victims, national heroes, internally displaced people, civil servants with at least a three years' experience, teachers of secondary schools with at least a five-year service term, PhDs, doctors of science and those having special merits in sport as well as the military with at least a three-year service term can use the preferential conditions. Each family having the right to such a mortgage loan can use it only once.

Around 24 out of 31 banks in the country, as well as 16 insurance companies [in total 21] and 11 appraisal organizations are the authorized banks of the Azerbaijan Mortgage Fund.

(1.7 manats = 1 USD on Dec. 12)

Islamic Solidarity Games-2021 may be postponed - Federation's Executive Committee (UPDATE)
Islamic Solidarity Games-2021 may be postponed - Federation's Executive Committee (UPDATE)
Islamic Solidarity Games-2021 may be postponed - Federation's Executive Committee
Islamic Solidarity Games-2021 may be postponed - Federation's Executive Committee
Mine clearing operations continue in Azerbaijan's liberated Aghdam
Mine clearing operations continue in Azerbaijan's liberated Aghdam
Loading Bars
Latest
New Delhi a natural partner in shaping Indo-Pacific region: Australian PM Scott Morrison
Economist Intelligence Unit calculates 13 per cent growth for India, more than IMF prediction
Kazakhstan boosts exports to Russia over 2M2021
French Bouygues carries out construction of two new facilities in Turkmenistan
Azerbaijan's ADIF shares data on compensations paid to depositors of closed banks'
No point in discussing Nagorno-Karabakh problem in previous context - Russian expert
2021 to see over 3% increase in global gas demand
Georgia sees increase in hotel price index for March 2021
Kazakhstan unveils timeframe for large-scale crops sowing
Kazakhstan shares vehicle production data
Prices for precious metals up in Azerbaijan
Turkmenistan signs number of documents with international organizations
EBRD to invest in another project in Azerbaijan
National Bank of Georgia sells funds to stabilize lari exchange rate
Azerbaijan sees growth in retail turnover of ICT products from early 2021
IMF eyeing support to Kazakhstan's cybersecurity and risk management sectors
Iran - P5+1 on right track in Vienna talks - Deputy FM
Italian Senate delegation visits Azerbaijan's liberated Aghdam (PHOTO)
Islamic Solidarity Games-2021 may be postponed - Federation's Executive Committee
Azerbaijan’s pipeline gas deliveries set to increase by over 15%
1Q2021 volume of sold food products in Azerbaijan's trade network up
Denmark speeds up reopening as epidemic stabilises
Azerbaijan IT company monitoring performance of financial structures
Kazakhstan carrying out several projects to boost local cars manufacturing
Turkmen-Chinese partnership has potential in number of areas
European new car sales jump 87% year-on-year in March
Kazakh-German oil extracting JV opens tender for design documentation dev't
Azerbaijani oil prices disclosed
Azerbaijani gas among drivers of Eurasian output growth in Q1 2021
None of Armenian PM's statements worth meaningful comment - Azerbaijani MFA
Axpo plans to produce green hydrogen
Oil climbs to four-week high on strong China data, demand revival
Azerbaijani insurer reports profit growth year-on-year
Kazakhstan's trade structure with EAEU countries for 2M2021 unveiled
Azerbaijani currency rates for Apr.16
Azerbaijan shares footage from Aghdam's Baghbanlar village (VIDEO)
Azerbaijan records high demand for underwriting services in local capital market
Coca-Cola Amatil votes in favour of European bottler's $7.68 bln takeover deal
Share of Azerbaijani gas in Greece’s imports reach 18%
Armenia violating int'l legal principles by refusing to give up minefield maps - Chair of Azerbaijani Parliament
SOCAR announces time of starting gas injection into storages
Rostselmash talks plans on supply of agricultural machinery to Azerbaijan
Azerbaijan enhancing support to SMEs (PHOTO)
Co-op between Azerbaijan, Uzbekistan progresses in all areas - Chair of Azerbaijani Parliament (PHOTO)
Thailand reports record daily number of 1,582 coronavirus cases
Mine clearing operations continue in Azerbaijan's liberated Aghdam
COVID-19 negatively affects mobile segment in Georgia
Georgian mobile operator Silknet’s revenue to increase in 2021 - Galt & Taggart
Major Bulgarian imports from Georgia include copper ores and crude petroleum oils
Azerbaijan developing plan for sustainable business
Georgia implements significant reforms within IMF's Extended Fund Facility program
Japan's March exports grew at fastest pace in more than 3 years
Amazon needs to do better for employees - Bezos
Turkmenistan, Kazakhstan have potential for co-op in maritime transportation
Turkey's central bank holds key policy rate steady at 19%
2,656 new daily COVID-19 cases reported in Kazakhstan
Iran buys 60 million doses Sputnik V COVID-19 vaccine
Eurowings kicks off Dusseldorf-Tbilisi-Dusseldorf flights
Apple announces 200 mln USD fund in forestry projects to reduce carbon from atmosphere
U.S. replaces Britain to be largest source of Ireland's imported goods
Azerbaijan's AzerGold to fund creating test laboratory in Dashkasan
Daimler AG unveiled the electric Mercedes-Benz S-Class luxury sedan (PHOTO)
Canadian lawmakers call for action from U.S., Canadian leaders in pipeline dispute
Economic outlook is brightening - Fed's Mester
Antibiotics in development not enough to tackle 'superbugs' - WHO
China’s Geely targets slice of premium electric car market with ‘startup’ brand Zeekr
Kazakhstan to create concept for development of creative industries
Italy hikes 2021 budget deficit to 11.8% of GDP: source
Turkey registers more than 61 000 new coronavirus cases
IMF corrects estimate on Iran's foreign exchange bank reserves
Kazakhs Association founded in Japan
Turkey provided invaluable support to Azerbaijan in information war with Armenia - MP
Georgian Co-Investment Fund eyes to implements another energy project
Baku Metro opens tender to buy metal structures
Volume of lending to construction sector greatly increases in Azerbaijan
Net profit of Azerbaijani ASB Bank in 1Q2021 decreases
Azerbaijan eyes starting fish caviar export to Hong Kong in 2021
Aggregate capital of Azerbaijani ASB Bank grows
Georgia's Silknet maintains strong cash balance in 2020
Armenia confuses history with mythology again - Azerbaijani Foreign Ministry
Azerbaijani president congratulates president of Djibouti
Turkey leads among countries investing in Azerbaijan's non-oil sector (PHOTO)
Museums like War Trophy Park in Baku, open in many countries - Russian historian
Russia ready to assist in normalization of relations between Azerbaijan, Armenia
Azerbaijan has great opportunities for wind energy dev't - expert
Azerbaijani Foreign Ministry responds to statement of OSCE MG co-chairs
National Bank of Georgia sees decrease in international reserves
Various types of fabrics exported to Turkmenistan from EAEU countries
Kazakhstan's KMG Engineering to buy pump-compressors via tender
1Q2021 assets of Azerbaijan Industry Bank slightly down
Turkmenistan Railways opens tender for installation of surveillance cameras
Kazakhstan’s telecommunications operator to pay dividends for 2020
Kazakhstan’s Kazatomprom sells its solar energy subsidiary
Azerbaijan, Belarus discuss military-technical cooperation prospects
Passenger traffic in Georgia slowly getting back on track
Zangazur corridor to create single economic space between Turkey, Azerbaijan - expert
Kazakhstan considers standardized license agreement with EAEU members
Uzbekistan considering restoring air communication with Azerbaijan
Precious metals production down in Kazakhstan
Azerbaijan discloses number of COVID-19 vaccinated citizens
All news