OREANDA-NEWS. September 07, 2009. The Central Bank of Azerbaijan (CBA) will not conduct direct loaning  of construction  sector under state guarantees.

Elman Rustamov, CEO of CBA, reports that the bank will not deliver direct loaning to construction sector.

“Mortgage loaning is an engine of construction  sector and work over turning the mortgage into permanent efficient market tool now,” E.Rustamov said,

For the time being, CBA granted one loan to economics under state guarantees in the amount of AZN 750 million loan for the term of 7 years with 2 privileged period at annual rate 3% to the State Oil Company of Azerbaijan (SOCAR).

Nevertheless, the bank registers restoration of construction and building sector after crisis.

In accordance with results of monitoring, employment grows in the sector and increase of prices has resumed. Exposition period which grew 5-6 years in succession and achieved 6-8 months, has started to decrease. Monitoring is being conducted jointly with the Association of Real Estate Market Participants.

“Every AZN 1 invested in building results in investment of AZN 5 in related industries,” E.Rustamov said.