Experts: Mortgage lending terms to be significantly soften in Azerbaijan

Baku. 28 October. REPORT.AZ/ In the near future, terms of mortgage lending in Azerbaijan will significantly soften. Report was told by expert economist Vugar Bayramov, commenting on yesterday's decree of President Ilham Aliyev on the establishment of "Azerbaijan Mortgage Fund".

V.Bayramov noted that the establishment of "Azerbaijan Mortgage Fund" aimed at improving the conditions of mortgage lending, the expansion of opportunities for mortgages for young families.

"Despite the rise of the number of families receiving funds from the Mortgage Fund, more than 17 thousand families receiving mortgages totaling 700 mln AZN, mortgage terms not available for young families. Although central bank last 2-3 years, annually announces the simplification of mortgage lending in the shortest time, but there is no improvement in this direction so far. The only decision taken to increase the maximum amount of social mortgage loans from 35 to 50 thousand AZN.Interest rates and other issues remained unchanged," said the expert.

According to him, the fund will also continue the long-term placement of bonds, "From this position, the decree will strengthen financial support of the Azerbaijan Mortgage Fund."

Other important issues stipulated by the decree include the determination of the average market price during the pricing of mortgage loans.

Expert economist Natig Jafarli said that thanks to the presidential decree, more people will be able to take advantage of the Mortgage Fund.

"The main goal in creation of the fund was to move to self-financing since the end of 2011, beginning of 2012.

However, this did not happen because of problems in the management, as well as the problems with the fund's banking sector, which led to additional annual contributions to the fund from the state budget ", - said N.Dzhafarli.

In his opinion, it is necessary to revise the interest rates, to make changes to the legislative framework, to expand the categories of people who can get a mortgage: "Commercial Mortgage leaves very little chance of buying an apartment because of high interest rates. In the best case, the betting starts with 8%, rising to 16%, which is beyond the scope of many people. "

The independent expert Akhverdiyev Oktay said that the establishment of "Azerbaijan Mortgage Fund" will create conditions for the financing structure from various sources.

A.Ahverdiev did not rule out the possibility of lower interest rates: "I once made such a proposal.

Interest rates for low-income families should be low, for families who want to improve their living conditions higher."