Baku, Azerbaijan, Dec. 26
Authorized capital of the newly established Mortgage and Credit Guarantee Fund of Azerbaijan has been set at 466 million manats, according to the Fund’s Charter approved by a decree of President Ilham Aliyev dated Dec. 25, 2017.
The authorized capital of the Fund and its other assets consist of the book value of assets established by law and granted to the Fund by the decision of a founder in accordance with the Fund’s Charter.
The Azerbaijani state is not responsible for the Fund’s obligations and is liable for damages caused by the Fund’s activity within the state’s share in the authorized capital.
The Fund’s major objective is to create a mechanism of providing the population with living space through long-term mortgage lending, assist in attracting local and foreign financial resources for mortgage lending, as well as provide guarantees to entrepreneurs for manat loans taken from authorized banks, and grant subsidies for a part of the interest calculated on these loans.
The Fund doesn’t issue mortgage loans directly to the population.
The Board of Trustees of the Fund consists of five persons representing the Office of the President of Azerbaijan, the Ministry of Economy, the Ministry of Finance, the Ministry of Labor and Social Protection of Population and the Central Bank each.
The president of Azerbaijan appoints and dismisses members of the Board of Trustees.
Members of the Board of Trustees are appointed for a period of three years and carry out activities on a voluntary basis. They can be reappointed for the next term. Members of the Board of Trustees elect a chairperson on their own, and the term of office of the chairperson is three months.
Increase or decrease of the authorized capital of the Fund is carried out in accordance with the procedure envisaged in the Civil Code.
The funds of the Mortgage and Credit Guarantee Fund in national currency are kept in the bank accounts of the Central Bank of Azerbaijan.
The Fund uses free cash only for the following purposes:
- mortgage lending;
- purchase of shares (stakes) of facilities and government securities;
- placement of deposits in authorized banks or local banks, the credit rating of which cannot be lower than 1 percent when compared to Azerbaijan’s sovereign rating.
The decision on the reorganization and liquidation of the Fund is made by the president of Azerbaijan.