The draft for rules of governmental preferences issue on mortgage crediting will be approved by the President of Azerbaijan, trend reports quoting Faik Mamedov, executive director, Azerbaijan Mortgage Fund.
Mamedov said the previous Presidents orders contained commands on working out mechanisms and categories, therefore specific decisions on the projects will be approved at the higher level.
The National Bank already submitted NBA and Youth and Sports Ministry-approved version of rules to the Cabinet of Ministers. В"This mechanism concerns easing mortgage payments burden for specific poor categories (young families and militaries)В", said Mamedov.
Within these rules, the mortgage credit repayment term will be increased to 25 from 15 years and annual payment amount will be consequently reduced. Besides, the government is undertaking either half of first payment or half of the credit percentage amount.
According to the Ministry of Youth and Sports there are some 50,000 young families throughout the country needing in housing conditions improvement; The Ministry of Defense counts nearly 25 to 30 thousand families with militaries. В"We have to define some queue as we cannot cover all at once. Although the economics and dwellers welfare grows up, nevertheless large amounts will need. With 50 thousand young families we need some 1bn manat, which is not realВ", said Mamedov.
According to preliminary figures, this year it will not be necessary to increase budgetary funds for mortgage, depending on duration of all applications examination, official said.
6mln manat have been issued from the fund for this purpose in 2006; over 1mln manat have been applied from this amount to date.