OREANDA-NEWS. September 03, 2009. The Central Bank of Azerbaijan (CBA) strives for turning mortgage loaning into  existing constantly instrument at the market.

Elman Rustamov, CEO of CBA said that  concept of development  of mortgage loaning in the country will be submitted till the end of year.

“Main task  is commercialization of mortgage that this will be  normal market instrument, operating constantly without external assistance. Only privileged social mortgage should  be supported by fiscal bodies  represented by the  Ministry of Finance, but category of its recipients should be not numerous,” E.Rustamov said.

Emission by the Azerbaijani Mortgage Fund (AMF)  at CBA of secured  bonds became the element of commercialization.

“Capitalization of fund at the expense of the  state allowed to carry out bond issue and allows to extend emission. This mechanism will exist, because already interested native and foreign investors,” E.Rustamov said.

Raising of funds at the expense of bonds already allowed to obtain the phenomenal results of loaning under the standards of mortgage fund after its renewal in June, 2008.

"About 800 loans were already issued, and almost half (370 loans) out of them in August. Totally loaning  under the standards of the fund makes AZN  110 million that allowed to solve  housing issue of  2,800 families in the country,” E.Rustamov said.

Process of mortgage loaning  in the country has started in 2006 from passing  special act and establishment of the fund. First loans were delivered  in March, 2007. From mid- 2007 till June 2009,  loaning was not conducted under the standards of the fund.