Value of guaranteed loans in Azerbaijan revealed

Business Materials 10 May 2019 17:22 (UTC +04:00)

Baku, Azerbaijan, May 10

By Kheyraddin Nasirzade - Trend:

The value of guaranteed loans issued by Azerbaijani banks in January-April 2019 exceeded 3 million manats, a source in the Mortgage and Credit Guarantee Fund of Azerbaijan told Trend May 10.

With the aim of expanding the use of the guarantee mechanism in the authorized banks, the Fund held information and educational events.

According to the Fund, given the significant reduction in banks’ risks on mortgage loans, the maximum interest rate on guaranteed mortgage loans was reduced to 7 percent per annum, and on preferential mortgage loans to 3.7 percent per annum, in order to expand public access to mortgage loans and reduce the burden on guarantee commissions,.

The Mortgage and Credit Guarantee Fund is the only state organization in Azerbaijan that provides guarantees and subsidies for mortgage loans.

The authorized organizations of the Mortgage and Credit Guarantee Fund of Azerbaijan for guaranteeing loans include 25 banks of the country (for mortgage lending) and 10 banks (for credit guaranteeing) as well as 19 insurance companies and 16 appraisal organizations.

In 2018, the value of guaranteed and subsidized loans in Azerbaijan amounted to 17.5 million manats.