Mortgage conditions worsen in Azerbaijan : credit sum falls, rates and terms grow
Baku, Fineko/abc.az. The Central Bank states strengthening of tendency for decrease of average mortgage credit size, issued by authorized agents of Azerbaijan Mortgage Fund ( AMF) under the CBA.
The CBA reports that by 1 July average mortgage credit in the country fell to AZN 38.940 from AZN 39.378 for early 2012 and almost AZN 40.350 in April 2010.
Reduction of credit size goes on the background of mortgage rates increase. By 1 July annual interest rate on mortgage loans reached 7,1% against 6,91% for early 2012. The lowest mortgage rate was recorded in January 2010- 6,79% and the highest in March 2012- 7,21%. At that the AMF and its agents have statutory rate limit 8% on standard mortgage and 4% on social mortgage.
Despite the rate growth, mortgage crediting period is rising. By 1 July it made 277 months on average, keeping at that level since March 2012. By early 2012 average period of mortgage credit made 270 months.
Statistics is relentless- mortgage crediting conditions in the country deteriorate, although the CBA repeatedly announced their liberalization.
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