Azerbaijan, Baku /corr. Trend I.Khalilova / The Finance Minister of Azerbaijan, Samir Sharifov, said that the Government is not going to refuse support for mortgage crediting in Azerbaijan.
"Azerbaijan Mortgage Funds has been created to provide State support to mortgage crediting and due to this the State Head gave relevant tasks to the Government's economic sector. Mortgage crediting has already acquired a wide character, and taking into consideration the growing interest, it is high time to attract additional foreign finances," the Minister said.
According to the Minister, international financial organizations show interest in financing mortgage credits in Azerbaijan and discussions are taking place over this issue.
The Minister believes that the credits should be given not only at the expense of State finances. The Finance Ministry has, together with the National Bank of Azerbaijan, devised the mechanism that allows transferring market financing of the mortgage crediting. It needs to change interest rates to expand the source of financing. "The State is prepared to continue cooperation because the banks allocate credits for twenty years. Up to now, the State budget has allocated AZN 46mln for these purposes and part of it has already been used and the remaining part for 2007 will be allocated in the second half of the year," Sharifov said.
Up to now, Azerbaijan Mortgage Funds has financed mortgage credits in the amount of AZN 56mln.
A large part of the finances presented to the population on preferential terms falls towards refugees, internally displaced persons, and families of military people.
In addition, 17% of the preferential credits has been presented to State servants, 6% to candidates of science, and 4% to successful athletes. Furthermore, 69% of the credits fall towards people between the ages of 18-35 years.