Reduced mortgage lending

The Azerbaijan Mortgage Fund (AMF) in January-August secured mortgage loans at the level of 73.2 million manat (minus 7.5% for September 1 last year).

According to the Central Bank, in August, the agent banks issued mortgage loans in the amount of 6.5 million manat (an average of 200 dwellings - Turan). Refinancing loans totaled 78.5 million manat.

For 8 months AMF bonds for 40 million manat were placed. During this same time, the Fund received AZN 20 million from the state budget to finance social mortgage. The peak volume of this kind of mortgage lending was in April - then the people needing homes received 14.6 million manat of mortgage.

AMF created in 2005 has been issuing mortgage loans on commercial terms since July 1, 2009 to citizens of the country through 28 authorized banks. Loans are granted for a period of 3 to 25 years and the maximum loan must not exceed 50 thousand manat at the rate of not more than 8% per annum.

Social mortgage is financed from the state budget. Its maximum size is also 50 000 manat, but at a maximum rate of 4% per annum.

The volume of mortgage lending at the expense of the Azerbaijan Mortgage Fund (AMF) in 2013 amounted to 112.9 million manat. Annually AZN 40 million is allocated for social mortgage from the state budget. --17D-