TODAY.AZ / Business

Shore Overseas Azerbaijan rejected suggestion of Mortgage Fund

06 March 2006 [19:01] - TODAY.AZ
The Shore Overseas Azerbaijan non-banking credit organization (NBCO) refused to be an authorized credit organization in mortgage crediting process.

As APA was told by head office of NBCO, although the Shore Overseas Azerbaijan was offered by the Mortgage Fund of Azerbaijan to participate in mortgage crediting, existing conditions of this process did not satisfy NBCO. So, pursuant to existing conditions, the Mortgage Fund will grant funds to authorized credit organizations with 6% per annum, and authorized credit organization, in their turn, will provide funds to consumers with 12% per annum at most. However, Shore Overseas Azerbaijan extends credits to its clients with 18-20% per annum on average.

It was also informed from NBCO that Shore Overseas Azerbaijan intends to attract a $5m credit from the OPIC soon. After receiving the loan, NBCO plans to independently start mortgage crediting in Azerbaijan. Shore Overseas Azerbaijan plans to provide mortgage loans with 12% per annum for 15 years at most.

By January 1 2006, volume of credit portfolio and accumulated credit portfolio of Shore Overseas Azerbaijan, established by the U.S. Shore Bank Advise Service credit organization in December 1999, totaled $4.889m and $12.462m, respectively.


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