AMF Agent Banks About a Third of Mortgage Lending

The authorized banks of Azerbaijan Mortgage Fund (AMF) issued in September 2012 mortgage loans of 3.07 million against AZN 3.24 million in August. This is 2.5 times less than in September 2011.

According to the AMF, in the reported month the fund was refinanced in the amount of 3.97 million manat. The total amount of refinancing this year was 69.5 million manat.

Since 2006 the Fund has issued mortgages worth 391.02 million manat. During the first 9 months the agent banks issued mortgage loans totaling 45.58 million manat, which is 33.7 percent less than in January-September 2011. Of these customers, 41% were aged between 18-29 years, 31% - at the age of 30-35 years and the remaining 28% - at the age of 36 years or more.

Today, the state finances a social mortgage, for purposes of which the state budget annually allocates AZN 20 million. The Fund has received the funds in full.

Commercial mortgage is financed through the issuance of bonds AMF. For this purpose in 2009-2012 fund placed four emissions at 55 million, 75 million, 60 million and 20 million manat each. In December last year there was public registration of the prospectus of registered non-documentary bonds secured by the fund in the amount of 30 million manat. Today, the fund has posted AZN 20 million from the last issue.

Mortgage loans are up to 50,000 manat, for Azerbaijan citizens, for up to 25 years at a rate no higher than 8%. Concession loans are up to 35,000 manat for up to 30 years at a rate of up to 4% per annum. - 15B -