Mortgage lending in Azerbaijan exceeds 311 mln manat

Mortgage loans worth 61.3 million manat were issued through the Azerbaijan Mortgage Fund (AMF) under the Central Bank of Azerbaijan in January-August, the AMF said.

In August, loans worth 11.1 million manat were allocated. A total of 311.2 million manat have been allocated since 2006 till Sept.1 2011

The total amount of refinancing loans issued by banks during the eight months amounted to 44.3 million manat. Some 14.2 million manat of 20 million manat envisaged in the 2011 state budget for financing the social mortgage has been issued since early year.

Conventional mortgages are financed by funds from the placement of mortgage bonds.

Some 72 percent of total loans (41 percent of borrowers were aged 18-29, 31 percent were aged 30-35) fall to young people and young families. Some 28 per cent of loans fall to borrowers over 36 years-old.

Under the AMF's terms, the maximum amount of the issuance of conventional mortgages in Azerbaijan is 50,000 manat at a rate of eight percent and for 25 years. But the amount in the social mortgage is 35,000 manat, at an annual rate of four percent and the term - 30 years.

The initial fee for ordinary and concessional loans is 15 percent.


/Trend/