Most of mortgage lending accounts for young families in Azerbaijan

Finance Materials 10 April 2019 16:58 (UTC +04:00)

Baku, Azerbaijan, April 10

By Kheyraddin Nasirzade - Trend:

In the structure of loans allocated by the Azerbaijan Mortgage and Credit Guarantee Fund, youth and young families accounted for 67.9 percent of the mortgage loan borrowers, Trend reports with reference to the fund.

The total value of mortgage loans is $380.3 million. Most of the funds provided (7,854 loans) account for mortgage loans issued to borrowers belonging to preferential categories. Also, 19.5 percent of mortgage loans were issued in the Azerbaijani districts in 2006-2019 (until April 1, 2019).

Considering the issue of mortgage at the expense of the fund, a positive trend in this area in recent years can be observed. Thus, in 2017, the fund allocated mortgage loans worth 203 million manats to 3,139 families. In 2018, the fund allocated 273 million manats to 3,960 families. In January-March 2019, 796 families received mortgage loans worth 52.4 million manats.

Since 2018, the fund has been providing support for the purchase of preferential housing offered for sale through the State Agency for Housing Construction, by issuing mortgage loans. In January-March 2019, 122 people received through the fund mortgage loans worth 5.3 million manats for the purchase of preferential housing owned by the State Agency. In general, as of April 1, 2019, the value of mortgage loans issued to finance preferential housing amounted to 15.4 million manats.

In general, since 2006, authorized credit institutions of the fund issued 26,068 mortgage loans totaling over 1.27 billion manats.

The Azerbaijan Mortgage and Credit Guarantee Fund (previously it was called the Azerbaijan Mortgage Fund) has been operating since 2006. The authorized banks of the Azerbaijan Mortgage and Credit Guarantee Fund include 25 banks of the country (for mortgage lending), 10 banks (for credit guarantees), as well as 17 insurance companies and 13 appraisal organizations.