Dynamics of Mortgage Lending in Azerbaijan Remains

Authorized banks of Azerbaijan Mortgage Fund (AMF) issued in August 2012 mortgage loans of 3.24 million against AZN 4.43 million in July.

According to the AMF, in the reported month the fund refinanced 8.75 million manat. The total amount of refinancing was 65.53 million manat in January-August.

Since 2006 the Fund has issued mortgages worth 387.95 million manat. Within 8 months of 2012 the agent banks gave mortgage loans totaling 42.51 million manat, which is 30.7 percent less than in January-August 2011. Of these, 41% were given to people aged between 18-29 years, 31% - aged 30-35, and the remaining 28% - aged 36 years or more.

Today, the state finances social mortgage, and for this need the budget allocates annually 20 million manat. The Fund has received the funds in full.

Commercial mortgage is financed through the issuance of AMF bonds. For this purpose in 2009-2012 the Fund placed four emissions of 55 million, 75 million, 60 million and 20 million manat each. In December last year, the state 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 of up to AZN 50,000 are given to Azerbaijani citizens for up to 25 years at a rate no higher than 8%. Concession loans are up to 35,000 manat and given for up to 30 years at a rate of up to 4% per annum. - 15B -