Virtually No Mortgages in Azerbaijan

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-