Presentation of proposals on improvement of mortgage lending delivered in Baku

Azerbaijan Mortgage Fund Director Faig Mammadov briefed the participants about mortgage lending process and achievements in Azerbaijan, APA reports.

He said that the authorized banks of the AMF has started lending mortgage loans since March1, 2006 and has to date lent 190 mortgage loans worth AZN 4m.

Average mortgage loan was AZN 21 500, home was 54 sq meter, monthly repayment was AZN 250, mortgage term 13 years, annual interest rate 9.5% percent, average borrower 33 year-old.

OMNI Consultants expert Elnur Mammadov spoke of contradictions and shortcomings in regulatory framework for mortgage lending system and made some proposals.

The presentation was led by local and international experts and covered the following topics: Proposals on resolution of inconsistencies and contradictions in mortgage legislation; analysis of current framework for secondary market mechanism to create, purchase and sell mortgage-backed securities; extrajudicial mortgage realization; summary on mortgage securities turnover; improvement of mechanisms of issuance and turnover/circulation of apartment certificates; development of Mortgage Markets in Azerbaijan and the Role of Azerbaijan Mortgage Fund.