Azernews.Az

The maximum amount of any loan within the social mortgage system provided by the Azerbaijan Mortgage Fund (AMF) under the country's central bank has to be increased, deputy chairman of the Central Bank of Azerbaijan (CBA) Alim Guliyev told journalists on Wednesday.

"The Central Bank of Azerbaijan addressed the government with a proposal," Guliyev said. "Proposals involve increasing the maximum loan amount to 50.000 manats from the current 35.000 manat."

The draft state budget for 2013 provides for allocation of 40 million manat to financing of mortgages which is twice the amount of the current year.

According to the deputy chairman of the Central Bank, proposals are also being considered to increase the credit limit on commercial mortgages.

Previously Trend news agency reported that the amount of a conventional mortgage is planned to be doubled up to 100.000 manat.

The process of mortgage lending began in March 2006 and since then it has reached 395.52 million manat. The AMF has refinanced only 306.55 million manat of this amount and received 136 million manats from the state budget in 2005-2012.

Today, the maximum amount of conventional mortgages through the AMF is 50,000 manat at a rate of eight per cent and maturity of 25 years, for social mortgage this amount is 35.000 manat, at an annual rate of four per cent and a term of 30 years.

The initial payment on the social mortgage is 15 per cent and 20 per cent for conventional loans.