By the end of April Bank of Azerbaijan is joining bank-agents of Azerbaijan Mortgage Fund with National Bank of Azerbaijan. The Bank officials told Trend that preparation included conversations with construction companies on offering clients apartments in complete buildings. The bank officials said such cooperation would enable the clients purchase the apartment at more favorable conditions.
First time Bank of Azerbaijan plans to issue mortgage credits at 10% annual interest. However, further this rate may be reduced to 6-8%.
To guarantee the return of credit, Bank of Azerbaijan is going to use the warranty institute that is widely used abroad. Such practice envisages providing guarantee from 2-3 people familiar to the borrower.
At the moment bank-agents of the Fund are IBA, Atabank, Bank of Baku, bank Standard, Caucasian Development Bank, Kochbank-Azerbaijan, bank Respublika, Unibank, Kapitalbank, Nikoilbank, Teznikabank, Turanbank and Khalgbank.
Maximum amount of credit may be up to AZN 30k at credit issue term 3 to 15 years. Interest rate on mortgage credits issued by bank-agents shall not exceed 12%; this rate remains unchanged despite NBAs considering reduction of quotation rate (currently 6%).