Fitch affirms rating of Azerbaijan Mortgage & Credit Guarantee Fund [UPDATE]

By Azernews

By Mirsaid Ibrahimzade

The amount of guarantees provided on loans by Azerbaijan Mortgage and Credit Guarantee Fund (MCGF) to small and medium-sized enterprises (SMEs) will reach around 265 million manats in 2019, Trend reports with reference to Fitch Ratings.

Fitch Ratings has affirmed MCGF’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB+'.

According to preliminary data, the fund’s cash, bank placements and investment in government securities totaled 368 million manats at the end of 2018.

The fund is the only state entity that provides subsidized mortgages in Azerbaijan. The fund holds more than 60 percent of real estate loans portfolio borrowed by households in Azerbaijan.

Azerbaijan Mortgage and Credit Guarantee Fund CJSC was established on December 25, 2017 by merger of the Azerbaijan Mortgage Fund and the Credit Guarantee Fund.

The Fund’s major objective is to create a mechanism of providing the population with living space through long-term mortgage lending, assist in attracting local and foreign financial resources for mortgage lending, as well as provide guarantees to entrepreneurs for manat loans taken from authorized banks, and grant subsidies for a part of the interest calculated on these loans.