IFC Prepares Program to Develop Housing Financing in Azerbaijan

Business Materials 6 July 2007 15:09 (UTC +04:00)

Azerbaijan, Baku /corr. Trend I.Khalilova / The International Finance Corporation (IFC) is preparing a program to develop the housing financing market in Azerbaijan, said IFC representative to Azerbaijan, Aliya Azimova. "I think that by the end of the year we will be ready to present the program," Azimova said.

The program is being devised within the second stage of the IFC technical assistance for housing financing in Central Asia and Azerbaijan. Azimova believes that nearly 3-4 banks will be financed at the expense of the IFC funds, but it is not intended to co-operate with the Azerbaijan Mortgage Fund in this regard. "The Corporation does not finance State organizations like the Azerbaijan Mortgage Fund. The activity of the IFC includes supporting the private sector through financing projects in this sector," Azimova said.

According to Azimova, the finance amount has not been confirmed yet, but the IFC cannot finance more than 60% of the authorized capital of the banks. The Corporation presented nearly $3.2mln for Azerbaijan and Central Asia for one-and-a-half years. The Switzerland State Secretariat for Economic Affairs, SECO joined the second stage of the project in Azerbaijan. Within the joint project, the funds will be presented by IFC and partially by SECO. SECO will provide finance only for Azerbaijan.

The Head of the project is S. Ruiz Morales.