Azerbaijan, Baku/ Trend, corr. I. Khalilova / Insurance companies operating in the country are concerned about amendments moved to the standard requirements to presentation of mortgage credits via the Azerbaijan Mortgage Fund (AMF) operating within the National bank of Azerbaijan. Jamil Malikov, the Director general of Insurance Company, MBASK, has said that expelling the life insurance of the borrower from the number of financial services which are to be available at receiving a mortgage credit may lead to social troubles. They may appear in case of presenting funds for a more long term - 15-25 years.
According to him, the banks repudiated to require insuring their lives from the borrowers.
Elman Rustamov, the Chairman of the Board of the National Bank of Azerbaijan , considers that reductions in the list of obligatory requirements to present mortgage credits were necessary to reduce bureaucracy. .
"Taking into consideration all these expenditures, credits cost too expensive, therefore they may loose their interest. We are looking a balance of interests and reducing the real efficient percent was the key role, therefore we decided to reduce expenditures on some kinds of services, but the population may voluntarily accept polices on life insurance," noted Mr. Rustamov.
He thinks that due to the remaining requirement to insurance of risks on accommodation, the insurance organizations will have a huge market with taking into consideration the perspectives of growth of mortgage crediting. On the other hand, the mechanism of mortgage crediting will be improved due to the foundation of the insurance institution - the Fund for Guaranteeing Mortgage Credits. Mr. Rustamov says that they may return to this issue in some time if risks emerge. "The process of adaptation and monitoring is permanently being conducted, " added the Head of NBA