International Financial Corporation to Provide Technical Assistance to Azerbaijani Mortgage Fund to Introduce Commerce Mortgage

Business Materials 6 September 2007 11:42 (UTC +04:00)

Azerbaijan, Baku / Trend corr.I.Khalilova / The International Financial Corporation's project (IFC) to develop the housing financing in Central Asia and Azerbaijan will provide technical assistance to the Azerbaijani Mortgage Fund in September to introduce commerce mortgage, Azar Aliyev, the financial analyst of the project, stated.

The Mortgage Fund, together with State support, will also draw investments from local and foreign markets. IFC's consultant will provide assistance in implementing the business project. The main goals for cooperation are being defined with the Azerbaijani Mortgage Fund.

The government will also continue supporting the social mortgage even after the introduction of the commerce financing of the mortgage. The social mortgage will be financed by privileged terms and the commerce mortgage by market terms. A task group will be created to improve the mortgage crediting system.

The scheme of issued mortgage crediting:

Primary conditions Average conditions Total Social mortgage Differences
Interest Rate 12% 8% 6% 4% 3
Term of credit issue 15 years 15 years 25 years 30 years 2
Initial payment 30% 30% 15% 15% 2
Sum of credit, AZN 30 000 30 000 50 000 35 000 -2

The project is financed by IFC and the State Secretariat for Economic Affairs - SECO of Switzerland.