Azerbaijan, Baku / Trend corr. I.Khalilova / The National Bank of Azerbaijan (NBA) refuses to announce terms for restoring financing of mortgage credits through the Azerbaijani Mortgage Fund (AMF). Aftandil Babbayev, the Deputy Chairman of Management of the NBA, stated on 10 August that presently, refinancing of earlier allocated mortgage credits by member-banks of AMF is being implemented. The government is considering the issue on increasing of provisions for this purpose. The National Bank is sure that this mechanism will work in future and the government will take all necessary measures.
"We expected such demand for mortgage credits due to an increase of the population's income. I do not consider that the current situation regarding stopping mortgage crediting will affect the trust of the population, as we inform them about the government's plans for supporting a mortgage mechanism within the framework of their capacity. Taking into consideration the experience of CIS countries, Azerbaijan provided better support of mortgage crediting than Kazakhstan and Russia," Babayev said.
Some AZN 20mln is planned to be allocated from the state budget in 2007. About AZN 10mln has already been allocated to the account of AMF.
According to Babayev, the negotiations on introduction of a commerce mechanism on financing mortgages have already begun. The Mortgage Fund may be financed also through foreign and investors budgets.