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Will Azerbaijan expand list of preferential mortgage recipients?

Finance Materials 9 March 2019 13:02 (UTC +04:00)

Baku, Azerbaijan, March 9

By Azad Hasanli - Trend:

Azerbaijani government doesn’t see the need to include oil workers in the list of recipients of preferential mortgage loans, a source in the government told Trend March 9.

“Housing conditions of low-income families is the main factor attention is paid to when expanding the list of recipients of preferential mortgage loans,” the source noted. “Over 21,000 people work in the oil and gas sector of Azerbaijan, and their average salary is 3,583.7 manats. This figure is much higher than the average salaries of other individuals in this list.”

In this regard, the Azerbaijani government sees no need to provide oil workers with mortgage on preferential terms, according to the source. The source also noted that expanding this list would require new budget expenditures.

“In 2018, 50 million manats were allocated from the state budget for the issuance of preferential mortgage,” the source added. “During the same period there were much more applications for preferential mortgage and their total amount is 186 million manats.”

Thus, the inclusion of oil workers in the list of recipients of preferential mortgage loans may seriously limit the possibility of issuing preferential mortgage in Azerbaijan.

The maximum amount of preferential mortgage in Azerbaijan is 100,000 manats and it is issued for a period of 30 years. The minimum payment should be 10 percent of the cost of housing. The maximum interest rate on preferential mortgage loans is 4 percent.

The family members of war victims, national heroes, IDPs, civil servants with at least a three years' experience, teachers of secondary schools with at least a five-year service term, PhDs, doctors of science and those having special merits in sport as well as the military with at least a three-year service term can use the preferential mortgage conditions.

Each family having the right to such a mortgage loan can use it only once.

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