BAKU, Azerbaijan, November 27. The quality of Azerbaijani Mortgage and Credit Guarantee Fund (MCGF) remains stable, since impaired loans account for less than 0.1 percent of the total loans, Trend reports citing the Fitch Ratings international agency.
The share of the mortgage and covered bonds in the debt obligations of the MCGF totaled 85 percent as of October 31, 2022.
"The Central Bank of Azerbaijan is the bondholder of more than 30 percent of the fund's outstanding stock of debt, while the rest belongs to the commercial banks. The fund's cash totaled 43.5 million manat ($25.5 million) as of October 31, 2022, and was almost entirely held in the Nostro accounts of the Central Bank. The additional liquid assets include 39 million manat ($22.9 million) deposits in commercial banks and 92.2 million manat ($54.2 million) in government bonds," the agency said.
The fund is a non-commercial organization, and gaining profit is not its aim, but it still continues to demonstrate profitability, supported by low-cost funding. In 2021, the fund recorded 14 million manat ($8.2 million) profit against 7.2 million manat ($4.2 million) in 2020, due to the expansion of the loan portfolio by 30 percent, the agency added.
