Azerbaijan, Baku /corr. Trend I.Khalilova / The Deputy Chairman of the National Bank of Azerbaijan (NBA), Rufat Aslanly , stated that the NBA agrees with the Government regarding the issue of increasing the amount of finances from the State budget for the Mortgage Fund of Azerbaijan (MFA).
In 2007 AZN 20 mln has been intended for the mortgage credit and the first tranche in amount of $3 mln was allocated recently and the remaining part is expected to be allocated in the near future. According to Aslanly , the banks have not been given guidelines on the use of the mortgage crediting. However, due to the delay in financing MFA from the State budget, the banks appeared to of had a number of technical breaks. "Probably these issues will be regulated over the next two days," Aslanly stated.
He considers that the temporary ceasing of the mortgage crediting has not been caused by the changes in the mortgage conditions.
"We expected a mortgage boom in 2007 and it took place. The infrastructure changes and the improvement of the legislation lead to the decrease of the bureaucratic processes by almost two times," Aslanly said.
In the next stage, the NBA intends to ensure sustainability of the mortgage credits through applying market financing. The Mortgage Fund may be financed not only through budget, but also by attracting external finances and funds of investors.