The Azerbaijan Mortgage Fund (AMF) operating within the National Bank of Azerbaijan (NBA) has made public the strategic priorities in its activity in 2007, Trend reports.
Faig Mammadov, the Executive Director of AMF, said during the today press-conference that AMF intends to fully complete the foundation of the normative and legal base. The Presidential Office has already submitted the alterations to be made to the Civil Code by the Milli Majlis. The alterations to be made to the Civil Code are linked with the Presidential Decree on Approving the Mechanism on Granting Mortgage Loans, which was signed on January 23, 2007. The changes made will enable to reduce the term of registration of documents to receive mortgage loans.
As it was accepted by the international practice, the contract on purchasing-selling, mortgage contract, and credit contract may be registered within a day, said Mr. Mammadov.
In addition, the terms of registration of a mortgage paper in the State Securities Committee might be reduced. Notably, the Board of NBA has already taken corresponding rules on its presentation.
Mr. Mammadov thinks that with the commencement of parliamentary sessions, the alterations to the Committee will be passed. Moreover, changes and alterations are expected to be made to the Election Code in the future. According to the international experience, interest rates paid on mortgage credits are calculated from the borrower base which is subjected to taxation.
It means that interest rates are calculated from the monthly return, without introducing the base which is subjected to taxation. Changing this practice will enable expanding possibilities in the formation of free fund, as well as extending current and housing expenses. On the other hand, that will create a possibility to obtain a significant amount of the credit, said Mr. Mammadov. Taking into consideration the experience of other countries, a package of changes is expected to be formed in this field.
The further priorities in the activity of AMF in 2007 are to expand the initial market of mortgage crediting, massiveness of mortgage crediting in the country, elimination of barriers and other obstacles (bureaucratism, minimization of number of documents), as well as institutional development of AMF (solution of the issue connected with the administrative office and increasing the stuff).
The Impact of the Improvement of the Mechanism of Presenting Mortgage Loans:
|
Initial Rate |
Average Rate |
Total |
Social Mortgage |
Ratio | |
|
Interest Rate |
12% |
8% |
6% |
4% |
3 |
|
Term of
Credit |
15 years years |
15 years years |
25 years years |
30 years years |
2 |
|
Initial Payment |
30% |
30% |
15% |
15% |
2 |
|
Amount of Credit (AZN) |
30 000 |
30 000 |
50 000 |
35 000 |
-2 |
|
Monthly Payment (AZN) |
210 |
180 |
135 |
100 |
2 |