In January-July, mortgage lending fell by almost 22%

Authorized banks of Azerbaijan Mortgage Fund (AMF) issued in July 2012 mortgages of 4.43 million manat, against 3.92 million manat in June.

According to the AMF, in the reported month, the fund refinanced 12.32 million manat. The total of refinancing this year has amounted to 56.78 million manat.

Since 2006 the Fund has issued mortgages worth 384.71 million manat. Within 7 months the agent banks issued mortgage loans totaling 39.27 million manat, which is 21.8 percent less than in January-July 2011. Of these, 41% were persons aged 18-29 years, 31% - aged 30-35 years and the remaining 28% - aged 36 years or more.

Today, the state finances social mortgage, and to meet these needs the state budget annually allocates 20 million manat. 

Commercial mortgages are financed through the issuance of bonds of AMF. For this purpose, in 2009-2012 the Fund posted four issues of 55 million, 75 million, 60 million, and 20 million AZN each. In December last year a prospectus was registered for non-documentary bonds worth 30 million manat. To date, the fund has posted AZN 20 million from the last issue.

Mortgage loans are issued to citizens of Azerbaijan of up to 50,000 manat for a period of 25 years at a rate not exceeding 8% per annum. Concession loans are up to 35,000 manat for a period of 30 years at a rate of 4% per annum. – 15B -