Azerbaijan, Baku, April 30 / Trend I. Khalilova /
Azerbaijani DemirBank mastered the limit on mortgage lending by almost 90 percent through the Azerbaijani Mortgage Fund (AMF), acting at the Central Bank of Azerbaijan, DemirBank chairman Roman Amirjanov.
"The bank gave mortgage loans worth 8.8 million manat with the limit of 11 million manat. Applications are still received," Amirjanov said.
DemirBank also completed the development of credit from the International Finance Corporation (IFC) provided to the amount of $3 million. These funds were placed under commercial mortgages, so these credit resources were twice as much than on the state mortgage program.
"We have not begun to implement own mortgage program yet because of the high cost of living resources on the Azerbaijani market, although credit resources were placed within own program. This lending was approved by the Central Bank," Amirjanov said.
In general, there are no delinquent loans on the mortgage portfolio of DemirBank.
"It deals with the fact that the state mortgage program, despite the tough conditions, meets all requirements to minimize the risks," DemirBank head said.
Mortgage lending in the country began from March 25, 2006 by the AMF standards. From February 7, 2007 social mortgage was given. Demand for mortgages exceeded the budget provisions. From mid-June 2007 AMF stopped funding mortgages on its standards, resuming in June 2009.
Total amount of mortgage lending via AMF's standards (since March 2006) exceeded 162 million manat, which improved the living conditions of over 4,000 families. The fund granted mortgage loans to the amount of 152 million manat from 2006 to December 2009.
Total mortgage lending standards AMF (since March 2006) exceeded 162 million manat, which improved the living conditions of over four thousand families. Since the fund total from 2006 to December 2009 were granted mortgage loans in the amount of 152 million manat.
The state budget plans to issue mortgage loans worth 14 million manat in 2010. Moreover, the mortgage fund places bonds issued to the amount of 75 million manat.
Under the AMF's terms, the maximum amount of the issuance of conventional mortgages in Azerbaijan is 50,000 manat at a rate of eight percent and for 25 years. But the amount in the social mortgage is 35,000 manat, at an annual rate of four percent and the term - 30 years. Initial fee for the ordinary and concessional loans is 15 percent.
If the rates on AMF's loans vary in the interval 4-8 percent, commercial banks' ones hit up 18-20 percent, period - from 10 to 30 years. Agents of the fund are 18 banks.
One of the first banks in the country DemirBank began to work in 1989. The bank's shareholders are major international financial institutions such as EBRD and FMO.
On April 29, the current exchange rate is 0.8036 manat to $1.