Mortgage lending value in Azerbaijan since beginning 2019 revealed (Exclusive)

Business Materials 11 May 2019 12:58 (UTC +04:00)

Baku, Azerbaijan, May 11

By Kheyraddin Nasirzade – Trend:

Mortgage loans worth 74 million manats were issued in Azerbaijan during the first four months of 2019 through the country’s Mortgage and Credit Guarantee Fund, which makes up 82.2 percent of the annual plan for the current year, Trend reports referring to the Fund.

It was noted that the Fund planned an amount of 90 million manats for the current year, including preferential mortgage loans for apartments built by the State Housing Development Agency of Azerbaijan.

At the same time, the Fund plans to use the mechanism for leasing residential areas with the obligation to sell in accordance with the "Order for leasing residential areas of the Mortgage and Credit Guarantee Fund of Azerbaijan with an obligation to sell", approved by decree of President Ilham Aliyev of January 25, 2019. The volume of mortgage loans will be determined depending on the demand of the population for loans.

Currently, the Fund attracts funds from domestic financial markets by issuing mortgage bonds. After relevant legislative changes in 2016, the Fund began issuing mortgage bonds, which were noted as a fairly reliable financial instrument that protects the rights of investors at the maximum level.

By the end of this year, the Fund plans to raise funds for the issuance of interest-bearing mortgage bonds worth 150 million manats.

The fund has attracted 875 million manats to finance mortgage loans since 2009.

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