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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On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
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Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
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Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
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Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
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