Azerbaijan develops new mortgage program

The process of providing free housing for oil workers has been stopped – instead, construction cooperative of oilers had been created, the company began to give long-term mortgage loans them, in this case, the initial amount is also paid by SOCAR.

SOCAR Legal Department head Eldar Orujov says, according to the Housing Code, provision of the staff with houses under the former rules is impossible. In relation to it, admission to housing queue has been stopped since 2008 and company had made some amendments to the social program. One of the amendments considers reduction of housing queuers by making hard the demands connected with those persons.

Thus, variants have been viewed on turning non-residential areas of SOCAR into residential areas and giving houses to workers from here, as well as giving the areas, where the production has ended, to oilers under the decision of the Cabinet.

Another variant – establishment of construction cooperative. Along with the queuers, any worker of the company can join this cooperative: “That is, it has been decided to attract workers with an opportunity to build house at own expenses, as well as to attract the company”.

Members of cooperative are given mortgage loans on account of SOCAR. SOCAR has selected Xalg Bank as an agent bank for this process. SOCAR mortgage scheme works as follows: at his own expense a company invests deposits in bank at 3% per annum. The bank at the expense of these deposits issues mortgage loans at 4% per annum to members of the cooperative. In other words, the fee the bank does not exceed 1%. The term of the mortgage loan depends on a specific employee salary. The calculation is carried out so that the mortgage payment does not exceed 50% of the salary the employee.

In the past, great concessions within mortgage program were considered for persons standing in a queue for house. SOCAR pays down payment (50%) for such persons.

Volume of paid sum depends on period in which the employee stands in a queue. For example, 70% of persons standing in a queue since 1988-1992 will be paid by SOCAR. SOCAR’s mortgage program has also concessions for young employees. The youths graduated abroad within SOCAR’s scholar program may be members to this company in concessionary conditions. Their first sum will ne paid by SOCAR (50%).

At present, the construction of houses for Neftchi cooperative are underway – these houses are being constructed in Badamdar, Khatai and other places.

Orujov says mortgage lending started a year ago, as a trial. This experience was met by oilers with pleasure. New plots of lands were allocated for construction of new buildings. Totally, such areas make 70 hectares. 14 he is in Hovsan, 7 ha – in Bibiheybat and etc.


/APA/