Azerbaijani Economy 16 july — 13:09

President eased mortgage: Thousands of poor will receive apartments

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BY AYDIN KARIMOV, ECONOMICS SECTION

On July 14, Azerbaijani President Ilham Aliyev made amendments to the charter of Azerbaijan Mortgage Fund OJSC. Some rules for the issue of mortgage loans have also changed. As the real estate expert Rashad Aliyev said in a conversation with Azeri Daily, changes in the charter affect the organisational issues of the Fund's activities.

'In addition, the statutory fund has been increased from the current 307 238 671 manats to 366 million manat. The changes also touched upon the distribution of the Fund's revenues. If earlier, no less than 50% of the income should have been channeled to mortgage lending, now this barrier has been eliminated. That is, the fund itself will determine the level, possibly in accordance with the situation,' Rashad Aliyev said.

Also, the expert drew attention to changes in the rules for the issuance of mortgage loans. 'Previously, they were issued only for fully repaired appartments, the cost of 1 sq.m. of which did not exceed the average market value in this zone. Now it turns out that the limitations on the usual loans are removed. But for preferential loans they still left restrictions. But most importantly: there is no condition that the loan will be allocated only for fully repaired appartments,' says the interlocutor.

According to him, part of the clause that determined the maximum amount of the loan was removed from the rules. Before that, the amount was deduced with the help of certain calculations, which could vary according to the situation on the market. 'Until recently, this amount was 100 000 manats. It turns out that this restriction was lifted and the maximum level of the loan will be determined by the Fund itself. But this does not mean that it will increase it, but it has every right to do so. The maximum amount of credit on preferential loans was left at the level of 90% of the value of real estate. On ordinary loans, only the upper limit of 85% was left,' the expert points out.

In general, according to Rashad Aliyev, the changes introduced by the president are designed to create an even greater space for the Fund and the emergence of conditions for effective activity. 'Effective work is not only the implementation of social programs, but also financial stability, and economic dividends,' Rashad Aliyev said.

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