$80m allotted for mortgages in 2009
The National Bank of Azerbaijan (NBA) intends to
release securities valued at 65 million manats ($80 million) for
mortgage loans in 2009, its steering board chairman Elman Rustamov
has said.
Rustamov emphasized that this move was intended to put an end to the stagnation in the domestic real estate and construction sectors.
He said the average length of time for selling an apartment is 437 days in Azerbaijan and added that interest rates on mortgages would not be reduced. In fact, new loans will be provided only to customers with stable incomes.
"We can`t repeat the mistakes made in other countries. The global crisis was preconditioned by mortgage loans because people could receive credits by showing only a passport. This led to immense financial losses. Banks must not be loaded with high-risk mortgage credits," Rustamov said.
Rustamov emphasized that this move was intended to put an end to the stagnation in the domestic real estate and construction sectors.
He said the average length of time for selling an apartment is 437 days in Azerbaijan and added that interest rates on mortgages would not be reduced. In fact, new loans will be provided only to customers with stable incomes.
"We can`t repeat the mistakes made in other countries. The global crisis was preconditioned by mortgage loans because people could receive credits by showing only a passport. This led to immense financial losses. Banks must not be loaded with high-risk mortgage credits," Rustamov said.
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
Subscribe
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!