BAKU, Azerbaijan, Jan. 17
By Eldar Janashvili – Trend:
Azerbaijan Mortgage and Credit Guarantee Fund increased its total assets by 10.2 percent up to 1.4 billion manat ($823.5 million) in 2019, Trend reports referring to the fund’s financial report.
According to the report, total assets amounted to 1.3 billion manat ($764.7 million) in 2018 and 958.4 million manat ($563.7 million) in 2017. Accordingly, the volume of assets increased by 47 percent over two years.
The total amount of loans issued to the banks-borrowers amounted to 503 million manat ($295.8 million) in 2019, and 2,652 out of 7,096 applications were granted. The mortgage loans in the amount of 174 million manat ($102 million) were issued, while 1,390 loans in the general structure (80 million manat) that’s $47 accounted for preferential mortgage loans.
The ordinary mortgage loans are issued by the fund from domestic financial markets while preferential mortgage loans – through the state budget.
In 2019, 3,398 mortgage loans in the amount of 226.5 million manat ($133 million) were refinanced by the fund.
In general, the total amount of mortgage loans issued through the fund in 2006-2019 amounted to 1.4 billion manat ($823.5 million). As reported, 28,000 people obtained the opportunity to improve their living conditions through these funds.
Over 436 million manat ($256 million) accounted for the loans issued to the individuals referring to a preferential category (8,839). About 70 percent of mortgage loan recipients accounted for youth and young families. About 20 percent of loans account for the districts.
The amount of guaranteed and subsidized (preferential) loans issued by the fund tripled and amounted to 52.2 million manat ($30.7 million) in 2019 compared to 2018 (17.5 million manat, that’s $10.2 million).
In 2019, the fund placed mortgage bonds in the amount of 150 million manat ($88 million) with a three-percent annual rate.
In general, the amount of funds raised by the fund through the placement of securities in the domestic capital market exceeded one billion manat ($588.2 million) since May 2009.
The raised funds were used to finance ordinary mortgage loans with an eight-percent annual rate for up to 25 years.
The obligations on bonds worth 281.1 million manat ($165.3 million) were fulfilled through the drawn funds. Currently, the volume of bonds of the fund in circulation is 723.9 million manat ($425.8 million). The annual retained earnings amounted to 18.6 million manat ($10.9 million).
The authorized capital of the Azerbaijani Mortgage and Credit Guarantee Fund also increased up to 637 million manat ($374 million). The capital growth will be ensured through the state budget funds in the amount of 71 million manat ($41 million) envisaged for preferential mortgage lending in the expenses for 2020.
(1 USD = 1.7 AZN on Jan. 17)
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