A workshop on mortgage crediting system was held in Baku last week. Organized by the Azerbaijani Mortgage Fund (AMF) the seminar was dedicated to development of mortgage crediting in Azerbaijan. The mortgage crediting was set up on 1 March.
In this period over 600 people have appealed to the authorized banks of the Fund, while only 20 of them were successful to receive orders to obtain credits. It seems, they agreed with all uneasy terms of mortgage crediting. Maximal term allocated for mortgage crediting at the expense of AMF is up to 15 years, maximal sum of credit 30,000 manats, while interests are not to exceed 12 per annum.
The rest desiring to have houses could contact with the AMF through hotline, or send appeals in connection with unacceptability of the terms of mortgage crediting and possible privileges. Thus, the AFM has received approximately 150 appeals from low0kncom citizens and those who rent apartments.
For such applicants Faik Mammadov, the Executive Director of the AMF, said that not only the incomes of a borrower, but also three of his relatives are taken into consideration. Based on their average monthly income the calculation of a possible credit will be carried out.
As of calculations of the Azerbaijani Mortgage Fund, application of privileged programs for mortgage crediting the burden on payment of every loan can be decreased 20-25%. The AMF resented to the Cabinet of Ministers proposals on the privileged category of people and application of this mechanism. In its proposals the Fund proposes to cut burden on major debts on credit to 50% through maintaining terms of approval of mortgage credit, as well as interests. As the terms of approval of mortgage credits are equal for all, there should be sources for covering part of payments for privileged contingent.
For the time being the public budget is an only source of financing of the AMF and it is not planned to attract foreign loans in the near future. At the expense of repaid credits on major debt and interests the AMF will carry out refinancing. Another internal instrument can be issue of mortgage securities.
Anyway, this year the AMF pans to issue around 1000 mortgage credits. He forecast was based on major demand for mortgage credits and the people are expected to demonstrate more and more interests in the purchase of apartments though mortgage credit.