Consultations Held with Azerbaijan Government on Mortgage Financing Sources: Head of Mortgage Fund
Azerbaijan, Baku / corr Trend I.Khalilova / Faik Mammadov, the Executive Director of the Azerbaijani Mortgage Fund (AMF), functioning at the National Bank of Azerbaijan (NBA), stated that AMF is continuing consultations with the state bodies to define the sources of mortgage financing further. To lessen future risks due to the difference between the funds allocated by the bank and though AMF, the application by the banks has been stopped.
"This project is of a social character and the mortgage has been financed through the budget funds. In the next stage there are plans to define additional sources of financing by AMF in which to reduce the dependence on the public budget and relevant consultations are underway," Mammadov noted.
There are reserved state funds and the NBA also appealed to the Government to attract additional funds. However, there can be other financing sources. NBA requested the increase of budget assignments to the amount of AZN 20mln, by the sum of funds which was set in the 2007 public budget. "This turned out to be necessary because the credits allocated by the banks so far exceeded AZN 20mln," he noted.
So far, AZN 10mln has been remitted to AMF from the 2007 public budget assignments. AMF continues financing out of these funds, whilst the financing of additional credits at new appeals is still questionable.
In compliance with AMF's rules, the Ministry of Finance and the State Oil Fund of Azerbaijan can both be sources of finance for the Fund through the issue of securities, attracting credits and grants. Furthermore, repaid part of the earlier issued mortgage can also be used in this respect. Meanwhile, over AZN 0.5mln has been allocated out of this source," Mammadov stressed.