Ceasing Financing of Mortgage Loans Will not Affect Real Estate Market of Azerbaijan: Experts
Azerbaijan, Baku /corr. Trend U.Ismaylova / The ceasing of financing of mortgage loans in line with the Azerbaijan Mortgage Fund (AMF) will not affect the real estate market of Azerbaijan, said Azerbaijani real estate experts questioned by Trend .
Opinions were expressed mainly by the Executive Director of the public union Participants of Real Estate Market, Nusret Ibrahimov, as well as Heads of the assessment company Caspian Property Services and the consultation company Azerikonsalt.
The experts said that the situation will not affect prices in the real estate market, but the number of the property sale-purchase operations significantly decreased.
On 14 June the AMF highlighted a temporary termination of the financing of mortgage loans in line with the Fund due to the exhaustion of the finances of the Fund.
The Director of assessment company Koneko, Azer Babayev, said that little time was spent studying the impact of the termination of mortgage loans because the demand for the mortgages is partially covered by banks that finance mortgage loans at their own expense.
The 2006 State budget allocated AZN 26 mln for the AMF and 2007 budget - AZN 20 mln of which only AZN 3 mln has been transferred to the Fund as yet. The AMF began financing mortgage loans in March 2006.