Capital Bank prepares its own mortgage lending program

Business Materials 12 December 2005 20:38 (UTC +04:00)

The state-owned Capital bank has started developing its own mortgage lending program, the bank’s Board chairman Rauf Rzayev told today’s news briefing. According to him, the program defines the bank’s actions after coming into effect of the State Program on the mortgaging development in Azerbaijan, which is still under the government’s consideration.

Rzayev thinks, that the mortgage is to be aimed at providing the middle layers of the population with dwelling. In this regard the most acceptable conditions under such loans are to be for 20-25 year period and the interest rate is to be lower of the inflation level.

As it is seen, the bankers’ proposals differ from realities. Although the State Program has not been yet approved, according to the latest proposals of the country’s National Bank (NBA) the conditions under the mortgage lending have been proposed as follows: 5 years and the interest rate of 18% annual, the government told Trend. They do not differ from the usual bank conditions and the government gave back the NBA proposals for finalizing.