Azerbaijan Mortgage and Credit Guarantee Fund discloses details of activity in 2019
BAKU, Azerbaijan, Jan. 17
By Eldar Janashvili – Trend:
Azerbaijan Mortgage and Credit Guarantee Fund took important measures in 2019 to improve and stimulate the mechanism for providing guarantees and interest subsidies for entrepreneurial loans, Trend reports referring to the fund.
A new credit rating system, based on international best practice, which minimizes credit risks by assessing the solvency of business entities and determining the risk category, was created in early 2019.
Moreover, the fund reviewed the existing problems, conducted an analysis of international experience in the field of support for entrepreneurs working in small and medium-sized enterprises in 2019. As a result of the analysis in the practice of the guarantee mechanism, a completely new approach was used from the point of view of risk management.
As a result of the changes, the opportunities of using entrepreneurial loans guaranteed by the fund for entrepreneurs belonging to the low-risk category in accordance with the fund's credit rating model have been created.
The procedure for renting residential premises with a sale obligation by the Azerbaijani Mortgage and Credit Guarantee Fund was also approved as part of the ongoing socio-economic reforms in early 2019 to improve the mechanisms for providing the population with housing in the country.
In accordance with the approved rule, the fund plans to create an appropriate mechanism for renting residential premises with a sale obligation.
The fund carried out the preparatory work to ensure the implementation of the rental housing mechanism in 2019.
A housing stock has been created, the necessary procedures and internal rules have been developed to ensure the functioning of the mechanism, the requirements for tenants and residential premises have been determined. The work processes have been fully automated within the mechanism.
The services will be rendered to citizens through ASAN Service centers to ensure transparency and efficiency.
The fund’s centralized electronic services for providing guarantees and interest subsidies for entrepreneurial loans, as well as renting premises with a sale obligation were approved in 2019.
As a result, the fund handed over the electronic system of mortgage and credit guarantees for the use to the population and authorized organizations of the fund in 2019.
The automation of operations and services in the spheres of the fund’s activity has been adapted to the modern conditions through a new system based on modern cloud technology.
Furthermore, a mortgage annuity will be implemented through the fund’s assets.
The rental mechanism will be launched this year.
Follow the author on Twitter: @eldarjanashvili