OREANDA-NEWS. June 19, 2009.  Banks of Azerbaijan made more active the process of lending housing mortgage loans after its resumption since June 1, 2009 by Azerbaijan Mortgage Fund (AMF) under the Central Bank of Azerbaijan.

Tekhnikabank informed Fineko/abc.az that today it extended the first mortgage loan since the day mortgage crediting was resumed.

“The loan was received by 29-year citizen of Azerbaijan. A 25-year loan made AZN 40,000. He was the first mortgage receiver by Tekhnikabank after this crediting type was resumed in the country.” the Bank informed.

Housing mortgage lending was launched on March 25, 2006. The AMF received AZN 70 million out of allocated AZN 94 million from State Budget in 2005-7. In 2008 demand for mortgage loans exceeded budget assignments, and since mid-June 2008 the Fund stopped financing mortgage loans under its standards.

The Government of Azerbaijan resumed mortgage since June 1, 2009 after editing the mortgage rules.

AMF authorised credit institutions: the International Bank of Azerbaijan, Azerdemiryolbank, AGBank, AtaBank, Bank Avrasiya, Bank of Azerbaijan, Bank Standard, Bank Respublika, Gencebank, Kapital Bank, UniBank, Pasha Bank, Muganbank, Tekhnikabank, Turanbank, Khalq Bank, Zaminbank.

So far the AMF extends commercial mortgage loans for 25 years under rate of 8% per annum with maximum loan amount of AZN 50,000.

Earlier social mortgage rate in Azerbaijan was 4%, but size of the loan cannot exceed AZN 35,000.