Baku, Fineko/abc.az. International rating agency Fitch Ratings has assigned Azerbaijan Mortgage Fund (AMF) under the Central Bank of Azerbaijan (CBA) long-term ratings of “BB” in foreign and local currency. Fitch Ratings informed that the Outlooks on the ratings are Stable.

Ratings of AMF are located on the level lower than Azerbaijan’s Long-term rating in local currency (’BB+’/ Outlook Stable) that reflects status of the fund as an organization of state sector, control by the state through CBA and the important role that AMF fulfils in the national government’s policy in the sphere of  housing finance. Difference in ratings is caused  opinion of Fitch on the currently available support mechanisms of the fund,” it was informed.

In case of any changes in sovereign rating of Azerbaijan, and/or legal status of AMF and control over the fund, it will automatically be reflected through change in rating and/or Outlook on rating of AMF. AMF has no share capital and its reserves, for the most part, consist of funds, received from state budget.

As of August, 2009, total funds of AMF, received from state budget, amounted to AZN 72.4 million. The funds were divided by intermediary local banks as special mortgage loans at rates lower market ones, mainly, to Azerbaijani families with low and middle income, who conform to  certain fixed requirements. .

After establishment of AMF, since 2006, long-term residential mortgage portfolio of AMF has grown quickly to AZN 59.6 million  by end of 2008. As of August 2009, the portfolio increased to AZN  81.4 million. AMF started borrowing from capital markets in 2009 and its financial debt, as a result of the issuance of bonds, to be covered at the end of 2009 on prognoses will amount to AZN 55 million.

“Expected growth in business of AMF indicates that its demands for financing may total AZN 150 million over 2009-2010,” it was informed.

In September, 2005, AMF was established as an organization of the state sector by decree №299 of Azerbaijan President. Its charter was approved by a separate presidential decree in December of the same year. AMF aims at creating  funding mechanisms which provide housing to Azerbaijani citizens through long- term financing, as well as attracting domestic and foreign investments into mortgage financing.

27.10.2009 15:33