As of September 1 by the Azerbaijan Mortgage Fund (AMF) authorized banks on a national scale in the aggregate issued 17,997 mortgage loans totaling 730 million 802.42 thousand AZN.
The same indicators were at the beginning of June and in September. None of the potential borrowers received a credit for housing, and only 22 loans of an average of 50,000 AZN were granted from January to June.
Recall, last year was more effective for borrowers - on its results 2,146 loans totaling 97 million 273.98 thousand AZN were issued.
Housing loans have been issued by AMF since 2006, and the social segment (up to 50,000 AZN under 4% per annum) has been virtually absent from the second half of 2007. Now the issuance of commercial mortgage loans (up to 50,000 AZN under 8% per annum) is inhibited.
The reason is the lack of benefits for authorized financial institutions from loans. They earn more in consumer loans (20 to 40% per year) and business loans (12 to 18%).
Recall, as of September 1 the Mortgage Fund received 32.4 million AZN of budget funds for the issuance of social mortgage. --17D-
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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