Mortgage lending fell in 2012 by 30.5% - Central Bank

In this year through the Azerbaijan Mortgage Fund (AMF) 1,800 citizens received loans totaling 66.4 million manat, according the statement of the Central Bank of Azerbaijan (CBA) on the main directions of the monetary and financial stability in 2013.

Last year, the authorized banks of AMF granted mortgage loans worth 95.64 million manat. Thus, mortgage lending in 2012 decreased compared to 2011 by 30.5 percent.

Centralized system of mortgage lending in Azerbaijan started in March 2006. Today, the state finances a social mortgage, for the needs of the budget is allocated annually 20 million manat. In 2013, the social mortgage will be sent twice as much.

Commercial mortgage financed through the issuance of AMF bonds. For this purpose in 2009-2012 Mortgage Fund places five issues for AZN 55 million, AZN 75 million, AZN 60 million, AZN 20 million and AZN 30 million each. Last week the prospectus of interest-entry registered secured bonds in the amount of AZN 40 million passed state registration.

Mortgage loans are given to Azerbaijani citizens up to 50,000 manat 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. - 15V -