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Azerbaijan Mortgage & Credit Guarantee Fund talks advantages of rental housing mechanisms

Finance Materials 8 December 2020 14:32 (UTC +04:00)
Azerbaijan Mortgage & Credit Guarantee Fund talks advantages of rental housing mechanisms

BAKU, Azerbaijan, Dec. 8

By Zeyni Jafarov - Trend:

The mechanism for creating a rental housing program in Azerbaijan was introduced in order to meet the need for residential premises of citizens who have no enough funds to implement this process and to become a homeowner using apartments purchased through public funds with a long term of payment, Ramil Tahirov, Director of the Housing Rental Department of the Azerbaijan Mortgage and Credit Guarantee Fund, told Trend.

“Preparatory work on the mechanism for creating this program was completed at the end of January 2020, and already in March acceptance of applications from citizens through the fund’s e-platform became possible. Thus, to date, 380 contracts have been concluded with 7,000 citizens who have sent applications for obtaining rental housing via the e-platform, and about 600 residential premises remain in the fund's balance sheet,” the director said.

Speaking about the advantages of rental housing mechanisms, Tahirov noted that these living premises are provided to citizens on favorable terms.

“So, a contract with those who have expressed a desire to purchase residential rental premises is concluded from three to 25 years and until the entire cost of housing is paid off, it remains on the balance sheet of the Mortgage and Credit Guarantee Fund with an obligation to insure the property from the fund,” he added.

The director noted that this mechanism also has a number of advantages, namely that the mechanism for obtaining rental housing is also designed for citizens with low and average monthly income and the whole procedure is automated.

Along with this, those citizens who have problems in paying loans to banks can also take advantage of this program, said Tahirov.

“In the near future, the fund base is expected to be replenished with new apartments. It is planned to add especially those apartments located in the 9th micro-district and on Babek Avenue in Baku. At the moment, the total assets of the Mortgage and Credit Guarantee Fund of Azerbaijan are approaching 2 billion manat ($1.17 billion), and among all financial institutions operating in Azerbaijan, only the Mortgage and Credit Guarantee Fund of Azerbaijan has an international rating at BB+, equal to the country's sovereign rating,” the director added.

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