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Almost 30% of mortgage loans in Azerbaijan issued on preferential terms

Business Materials 21 August 2018 13:57 (UTC +04:00)

Baku, Azerbaijan, Aug. 21

By Anvar Mammadov - Trend:

As of July 1, 2018, 29.5 percent of all mortgage loans in Azerbaijan have been issued on preferential terms, according to a report of the Azerbaijani Mortgage and Credit Guarantee Fund (MCGF).

Since the beginning of the Fund's work in 2006, 6,698 preferential mortgage loans have been issued in Azerbaijan, including 460 loans issued this year, the report says.

The main source of mortgage financing in Azerbaijan is securities issued by the Azerbaijani Mortgage and Credit Guarantee Fund. In the first half of the year, 95 million manats (57.6 percent) of all attracted funds have fallen on the securities. The remaining 70 million manats (42.4 percent) were allocated from the state budget.

During the period, the refinancing of mortgage loans reached 1.05 billion manats, of which 309 million manats were directed to social mortgage.

The mortgages on preferential terms are acquired most frequently by the military men (74.8 percent), 11.5 percent falls on civil servants, 7.5 percent – internally displaced persons, 2.3 percent – employees of internal affairs agencies with a special rank, 1.7 percent – candidates of science, 1.5 percent – athletes, 0.3 percent – families of martyrs and teachers.

TOP 5 cities in Azerbaijan by the amount of the acquired mortgage loans (1H2018):

Number of mortgage loans

Baku

17,282

Sumgait

2,289

Absheron/Khirdalan

1,578

Ganja

825

Nakhchivan

252

In total, from 2006 to the present day, 23,101 mortgage loans totaling 1.07 billion manats have been issued by the authorized institutions of the Fund.

The authorized banks of the Azerbaijani Mortgage and Credit Guarantee Fund are 25 banks engaged in mortgage lending, 10 banks engaged in credit guaranteeing, as well as 17 insurance companies and 13 evaluation organizations.

(1.7 AZN = USD on August 21)

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