AMF borrows 40 million manat to support mortgage market
BAKU/28.01.14/TURAN : State Committee for Securities registered the issue prospectus on Wednesday secured -entry of registered interest bonds of the Azerbaijan Mortgage Fund under the Central Bank in the amount of 40 million manat. The nominal value of one bond is 1,000 AZN .
The current edition will be the eighth for the AMF after June 2009, there was renewed system of centralized mortgage lending. The volume of the first issue of seven-year secured bonds totaled 55 million manat, the second issue of 10-year unsecured bonds - 75 million manat, the third issue of seven-year secured bonds - 60 million manat, the fourth issue of 7-year interest secured bonds - 20 million manats, the fifth issue of 10-year interest- secured bonds - 30 million manat, the sixth issue of 10-year interest- secured bonds - 40 million manat, and the seventh issue of 10-year interest- secured bonds - 20 million manat.
Centralized mortgage lending started in Azerbaijan in March 2006 , but in June 2007 due to lack of funds mortgage lending was suspended until the summer of 2009. After that, the state began to finance social mortgage, for which the state budget in 2013 allocated 40 million manat. This year's funding will be the same .
The borrowed funds on the market AMF uses to refinance mortgage loans to its authorized banks . Given the means of this issue and those that are laid in the state budget for 2014 , about two thousand families will be able to take advantage of mortgage loans.
Mortgage loans are issued to citizens of Azerbaijan up to 50,000 manat for up to 25 years at a rate no higher than 8 % per annum. Concessional loans are up to 50 manat for up to 30 years at a rate of 4% per annum. - 15B -