OREANDA-NEWS. June 28, 2007. The mortgage rates should be brought inline with the market demands, said Azerbaijan’s Finance Minister Samir Sharifov, reported the press-centre of "Alfa" Insurance LLC.

“Mortgage lending should not be funded through government coffers alone. Along with government support, mortgage loan lending process needs its own financing principles,” he added.

He added that the planned funds will be delivered to the Azerbaijan Mortgage Fund in the second half, denying that delay in allocation of funds is related to disagreement between the Finance Ministry and the National Bank.

Azerbaijan Mortgage Fund has started lending mortgage loans since March, 2006. AZN 26 million was earmarked to the AMF for 2006 and AZN 20 million for 2007. The maximum interest rate is 8% annually.