Mortgage Fund Agent Bank to be identified by early February
The National Bank of Azerbaijan (NBA) plans to announce the list of agent banks of the Azerbaijan Mortgage Fund (AMF) till late January-early February. The final list of lending institutions will be formed depending on the readiness of banks to allocate the mortgage loans, the Funds executive director Faik Mammadov told Trend. Initially 15 banks and one non-banking institution (Shore Overseas) were announced to be selected as agent banks. However, as the AMF director noted, banks are to express their readiness for starting mortgage lending. The major criteria for banks selecting were assets, capital, servicing sector, including those performing lending operations under the housing mortgage.
According to Mammadov, the work on identification of requirements and norms for credits allocation, development of operational instructions is currently underway. Independent assessors are to be involved for estimation of mortgage. Banks and non-banking lending institutions assess mortgages themselves while lending.
The Mortgage Fund has got 130 billion, allocated from the state budget for 2005-5006. Under the presidential decree the limit per one borrower is up to 30,000 new manats (AZN). As earlier Mamadov said, about 1000 mortgage loans are expected to be allocated during this year. Taking into account a large demand in mortgage loans in future, additional funding sources are supposed to be involved after setting up the AMF work. According to the AMF Regulations, along with budget funds, grants, credits may be also involved. AMF is also entitled to issue securities.