Mortgage loans for AZN 50 million to be given by end of 2019 - EXCLUSIVE


October 21, Fineko/abc.az. Some time ago it was announced in the press that giving of mortgage loans in Azerbaijan has decreased much compared with the last few years. According to assertions, compared with first 8 months of 2018, it was given fewer mortgages this year. There were also delays in giving mortgages. And why did mortgage loans observed decline and whether it is linked with financial problems?

We addressed with such a question to the Azerbaijan Mortgage & Credit Guarantee Fund. In response to ABC.AZ’s inquiry the Fund informed that in general, in 2018, compared with previous years, mortgage loans were given for a record amount.

"Over Jan-Sept 2018 this figure reached AZN 134 million on ordinary mortgage loans and AZN 49 million on subsidized mortgage loans. For Jan-Sept 2019 the ordinary mortgage loans were given for AZN 64 million and subsidized mortgage loans for AZN 55 million," the Fund stressed and told about further plans – giving of mortgage loans in the total amount of AZN 50 million is expected by the end of 2019.

At the same time the improvement of mechanisms for providing the population with living space has always been in the spotlight of the government. Thus, in connection with the limited access of citizens with low incomes and insufficient personal funds for initial payment on mortgage loans, in order to meet the demand of those persons for residential premises, Presidential Decree #488 from 25 January 2019 approved the Procedure for renting residential areas of the Azerbaijani Mortgage & Credit Guarantee Fund with the obligation of sale". According to the approved procedure, the Fund should put into effect until the end of this year the appropriate mechanism for renting out residential premises with the obligation of sale. After the application of this mechanism, in 2019 it is projected to increase the amount of funds directed by the Fund for housing provision of the population compared with 2018."