Azerbaijan, Baku, October 29 / Trend I. Khalilova /
The process of securitization of mortgage portfolios in Azerbaijan can be launched after adopting of the law "Mortgage bonds, the manager of Corporation's Azerbaijan and Central Asia Primary Mortgage Market Development Project, Viktor Mints, told Trend .
"We are working on development of a legal base to issue mortgage bonds, which are an effective tool now. The crisis slightly affects mortgage bonds. The tool has more chances for rapid development now, Mints said.
He said that securitization can be the next stage of development of the mortgage market while overcoming the global crisis and transiting to a more stable condition.
"The market of securitized bonds is almost dead since the beginning of the crisis.
It was the first attempt to issue securitized bonds for the alsy two years. The situation with the development of this market will depend on the willingness of investors to buy them. But the beginning of securitization in the Azerbaijani mortgage market is not urgent today.
Mortgage market in Azerbaijan is at leading positions on development compared to other countries of Caucasus and Central Asia.
The Azerbaijani Mortgage Fund was founded as the organization of state sector in September 2005. It has launched loaning since March 25, 2006. At present, mortgage loans were granted to the amount of 132 million manat via the Azerbaijani Mortgage Fund in Azerbaijan. Joint funds of the fund from the state budget reached 72.4 million manat over 2005-2009.
Despite it, the law is under development. The first issue of mortgage bonds of the fund was realized to the amount of 55 million manat. Bonds have been already placed to the amount of 41 million manat.
On October 29, the official exchange rate is 0.8034 manat to $1.
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