Developers refused registration of housing certificates


For half a year as developers do not issue housing certificates to raise funds for housing finance. Although housing construction in Azerbaijan during this time acquired a higher scale.

Regulatory framework for the issuance and circulation of housing certificates in Azerbaijan was established in early 2008. In that year, four issues were taken 256 housing certificates for 19.6 million manat. In 2009 it was registered by the State Committee for Securities, only one issue of housing certificates for the sale of 387 units of housing certificates in the amount of 277.1 million manat, the subject of which were 81.8 thousand M2 area.

Housing certificates were not popular among construction companies in the coming years. In 2011 and 2012, as their issuers were just one company. Thus in 2012, the number of certificates issued decreased from 500 to 96 units. Guaranteed living area for these securities in 2012 amounted to 9,823 m2 or 66% less than in 2011 (29 200 m2). The company expects to draw on these certificates investors 61.8 million manat (4.5 times).

A member of the Milli Majlis, Ali Masimli economist believes that the reason low penetration of housing certificates in Azerbaijan related to the general state of the securities market in the country, the lack of social trust in the securities, as well as the shadow image of many construction companies. The more that companies have other opportunities to attract funds from the population for housing, said the deputy to Turan.

Masimli stressed that the resources for the development of this type of securities in Azerbaijan has not yet been exhausted. This requires the implementation of government agencies of information work of construction companies and the public.

Housing certificate is a type of securities placed among individuals and legal entities. Its nominal value is expressed in units of housing area and its monetary equivalent. This document provides the holder the right to acquire ownership of an apartment in a residential building, built with funds received from the placement of such securities. Repayment of housing certificate made ​​by the issuer at the end of construction after the date of finished apartments in the property of the owner and the housing certificate of state registration of the right. --08B--

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