Number of Mortgage Fund’s authorized banks falls

By Sara Israfilbayova

The number of the Azerbaijan Mortgage Fund’s authorized banks decreased to 24.

The Fund reported that Caspian Development Bank due to its consolidation with AtaBank was excluded from the list of authorized banks of the Azerbaijan Mortgage Fund.

The merger of AtaBank and Caspian Development Bank was announced on April 18. As it was reported, Caspian Development Bank will be liquidated and its assets will be transferred to AtaBank.

After the consolidation of the two banks, 31 banks operate in Azerbaijan, including two state-owned ones.

As of June 7, AMF has issued 19,242 mortgages so far. The total sum of mortgage loans has amounted to more 808 million manats.

In 2017, some 50 million manats ($29.4 million) are allocated from the state budget to finance social mortgage through the AMF. The same amount was allocated in 2016.

The AMF was established in September 2005, in order to improve living condition of population, build the efficient housing finance mechanism, adapt the supply with real demand and attract local and foreign investors to mortgage lending.

The main functions of the Fund are refinancing mortgage loans lent by authorized credit organizations, defining requirements on refinanced mortgage loans, managing financial risk to provide its activity and stability and taking measures within its authorities, with the purpose of providing liquidity in mortgage lending and attracting inexpensive financial resources.