The Central Bank reports that the Azerbaijan Mortgage Fund (AMF) issued in May 1, 2016 loans worth 1.1 million manats (31.7 times decline against the index for the same date last year). There is a significant difference in figures - according to operative data of the AMF, in January-April 17,995 mortgage loans totaling 730 million 702.42 thousand mantas were issued.
According to the CBA, in January-April AMF refinanced loans for AZN 21.6 million (minus 1.4%). In the same period, the Fund received 14.5 million manats from the state budget for social mortgage.
Recall, in 2015, 2,146 loans totaling 97 million 273.98 thousand mantas were issued, and a year earlier there were 2,275 loans totaling 99 million 927.74 thousand manats, which tends to suggest that mortgage lending receded to the margins of the financial market.
Mortgage lending on the AMF standards began on 1 January 2006 and is divided into commercial mortgages (up to 50,000 manats under 8%) and social mortgage (up to 50,000 manats under 4% per annum).
Social mortgage is issued from the state budget, but 50 million manats annually allocated to the Ministry of Finance has not been absorbed. This year, the President ordered to allocate additional mortgages of 200 million AZN, but at this lending rate, it seems, these funds will also remain unused. --17D-
Economics
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Last week, Azerbaijani media reported an impending increase in retail bread prices, attributing the rise to an increase in product weight. The following day, an official notification confirmed that the government had no intentions of sanctioning a bread price hike in the country. However, the threat of a price increase for this staple food remains for another reason.
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S&P Global Ratings has revised its risk assessment of Azerbaijan’s banking sector, upgrading the outlook from "stable" to "positive."
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In recent days, there have been claims that bread prices in Azerbaijan have risen. Social media users report that the price of bread has increased by 5-10 qepiks. According to consumer complaints, it is difficult to find weight information on factory-produced bread, commonly known as "zavod çörəyi" in Azerbaijan. In many cases, bread packaging does not include weight details. Similarly, bread sold at smaller bakeries and tandir houses often lacks information apart from the price.
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A trilateral meeting of the foreign ministers, transport ministers, energy ministers, and heads of customs services of Russia, Iran, and Azerbaijan is set to take place soon to discuss the progress of the Rasht-Astara railway project, a key element of the International North-South Transport Corridor (INSTC). This was announced by Iran’s Ambassador to Russia, Kazem Jalali.
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