Baku, Azerbaijan, April 4
By Anvar Mammadov - Trend:
The Azerbaijani Mortgage and Credit Guarantee Fund plans to independently insure mortgage loans, the Azerbaijan Insurers Association (AIA) told Trend on April 4.
The Fund proposes to amend the law "On Mortgage" in this regard, AIA said.
"Presently, in accordance with the legislation, insurance of mortgage loans is carried out by the country's insurance companies, However, the Fund plans to create a special pool, through which the loan insurance will be carried out," AIA said.
But, according to AIA, the insurance companies do not completely agree with this.
"The insurance companies are concerned over this step. The mortgage loan is issued for a long enough period, and the risks are increasing every year. Therefore, in 10, 15 or 20 years, the Mortgage Fund may lack the means to cover risks," AIA said.
Following the discussions between the Fund and AIA, the parties agreed to take into account the views of the insurance companies when drafting proposals to amend the legislation, AIA said.