The Azerbaijani Mortgage Fund (AMF) will start the issue of mortgage credits from 1 March through its 15 authorized banks, which joined the general agreement, Faik Mammadov, the Executive Director of the AMF, told Trend. According to Mammadov, all preparatory work has been done in this respect. The institutional work has been done, the quotations rates determined, rules for state registration of mortgage securities and different standard documents designed.
At present the insurance companies and independent estimators who will insure and estimate house are being determined.
The Board of the National Boar of Directors (NBA) defined the rates at 6%, while it can be reconsider twice a year, Alim Guliyev, the vice chairman of the Board said. Moreover, further the Mortgage Fund will also cover the expenses linked with the attraction of funds for mortgage crediting from other sources (international credits, pension funds, etc.), which requires defining the method to cover the efficiency of the Funds activities. For the time being the public fund acts as the major source of financing of the AMF.
Interests of mortgage credits issued by agent-banks should not exceed 12%, which the international experts regard as the most minimal worldwide. Guliyev is sure that under the rivalry the banks will try to allot loans at reasonable rates. Obviously, the mortgage credits will be expensive for borrowers, as it will have to cover additional expenses for insurance and estimator services. Limit per borrower is up to 30,000 new manats. The term of issue of credits is from 3 to 15 years.
The list of documents, which will be taken as base for attraction of credits, have been also defined. The important factor is that the banks will recognize the borrowers incomes, which were confirmed by the tax bodies. Unfinished buildings and plots cannot be a subject of security.
Guliyev announced on possible expansion of the list of agent banks and only in the first stage they selected 15 banks. Major criteria for selection were the amount of assets and other financial indices.