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KAZAKH BANK READY TO INVEST IN AZERI MORTGAGE

Business Materials 25 August 2005 12:01 (UTC +04:00)

Bank TuranAlem (BTA) of Kazakhstan announced its readiness for investing in the development of mortgage crediting in Azerbaijan, Erkin Tatishev, the Deputy Chairman of the Board of Directors of the BTA, said. "Azerbaijan adopted a Law on Mortgage and the preparations for its executions are underway. BTA, a leader on mortgage crediting in Kazakhstan, is ready to invest in mortgage in Azerbaijan in case of presence of relevant international laws and rules. BTA is ready to offer mortgage credits for 30 years under reasonable rates,” Tatishev underlined.

The bank wanted to increase its mortgage packet in Azerbaijan as minimum to $50m. It will enable to make secret the mortgage portfolio.

BTA holds 25% stake in the mortgage services market, and is eager to increase it to 30% by the end of the year. By 2006 BTA announced on making secrete through attracting foreign investors to mortgage portfolio in Kazakhstan by $3bn. "We are ready to carry out mortgage crediting only through one bank, while agency agreement can be concluded with different banks and attract from them mortgage pools. So, it will ensure incomes for local partners banks from the margin they established," Erik Sultankulov, the Financial Director of BTA, elaborated.

At present the Azerbaijani government is to adopt an executive mechanism of the law On Mortgage and adopt a program on development of the mortgage crediting. It is necessary to define with the registration of mortgage securities, terms, interest and initial fees on mortgage crediting.

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