Absence of long-term capital sources do not enable banks to present mortgage credits on long-term basis, the head of the International Financial Corporation (IFC) project on technical assistance to the development of mortgage financing in Central Asian countries, Steve Orleski told Trend.
Azerbaijani banks can finance only through two sources: at the expense of deposit base, which is very risky due to problems of liquidity, and at the expense of own capital, which Orleski regards as normal, while insufficient for rise of market industry. The banks can also borrow in the domestic capital market, whereas it does not function in Azerbaijan.
There will be problems if banks try to enter the international capital market, as it is very expensive procedure and the amount of loan should be high enough. The investors would like to have definite bonds with credit rating, that the Azerbaijani banks would place at the international markets, the project director underlined.
He also mentioned the absence of standard procedures in the bank, which would offer comfort for investors while mortgage dwelling crediting. Despite the state support I is still insufficient. The problem also exists in the adjacent fields involved in mortgage crediting insurance and appraisal activities.
Sector of reality services is staring developing, while stilt there does not exist a public database on deal with property. There is also a problem of absence of licensing of estimation activities in Azerbaijan.
