Mortgage & Credit Guarantee Fund announces allocation of mortgage loans in installments


October 22, Fineko/abc.az. For some time it was alleged that there were delays with giving mortgage loans to the population, and that the finances allocated to the authorized banks were given in parts. To clarify those claims, we appealed to the Azerbaijan Mortgage & Credit Guarantee Fund.

In response to ABC.AZ’s inquiry the Fund informed that subsidized mortgage loans are given at the expense of finances allocated to the State Budget on an annual basis, and ordinary mortgage loans at the expense of finances raised by the Fund in the domestic financial markets.

"Distribution of limits on financing of mortgage loans in previous periods was also carried out in tranches on the basis of appeals of authorized banks,” says the Fund and explained the issue of partial giving of mortgage loans.

“The reason for such allocation of funds is Fund’s periodic monitoring of the demand formed in the mortgage market. In cases when growth in demand for mortgage loans is observed, it is considered the matter of allocating additional limits to authorized banks within the attractive opportunities of the Fund to ensure the sustainability of lending."

By Elmir Murad