President of Azerbaijan Ilham Aliyev signed on 22 December a Decree on approval of Regulations of the Mortgage Fund under the National Bank of Azerbaijan (NBA).
The announcement made happy people who are impatiently waiting for improvement of their accommodation terms. The Law on Mortgage was adopted on 15 April 2005 in a spring session of the parliament and enacted into law on 9 June 2005.
The FundвЂ™s Regulations and the rules for the loan issuing on the account of the Mortgage Fund are endorsed aimed at establishing the funding mechanism for the Mortgage Fund under NBA.
The National Bank of Azerbaijan is committed with: to approve during 15 days the Mortgage FundвЂ™s structure and the staff list, to submit proposals on the Mortgage Fund privatization and turning it into the Joint Stock Company to the AzerbaijanвЂ™s president till the end of 2006, to resolve other issues, arising from the Decree.
The AzerbaijanвЂ™s Ministry of Finances is committed with ensuring transfer of funds to the account of the Mortgage Fund from the state budget 2005.
The Cabinet of Ministers of Azerbaijan is charged with: to define in the monthвЂ™s period the mechanism of allocating the mortgage credits on state preferences and to approve the rules for using these preferences, to resolve other issues arising from the given Decree within their competency.
However, the Ministry of Youth, Sports and Tourism said that in the initial stage, only the young families with high incomes can rely on benefiting the mortgage loan, as they have more opportunities to return the debts. In the second, it is possible to distribute the mortgage credit among young families with low salaries.