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Rabitabank to launch mortgage program next year

16 September 2008 16:24 (UTC +04:00)

Baku. Elnur Huseynguluyev â€“ APA-Economics. Azerbaijan-based Rabitabank plans to launch its mortgage program next year through funds from foreign financial institutions, said Elchin Gadimov, deputy Chairman of the Bank.
â€œIt is impossible to lend mortgage loans at the current rates because the market conditions donâ€™t allow lending at 20% annually. It is more favorable for banks to offer this as consumer loans,â€ he added.
He added that loans from abroad will be 2-3% more expensive next year because of economic trends in the world.
â€œFor example, our bank will lend mortgage loans for 8-15 years. The initial mortgage loan portfolio is expected to be $5 million,â€ he noted.
As at July 1, the bankâ€™s assets stood at AZN 98.649 million, loan portfolio at AZN 73.431 million, deposit portfolio at AZN 82.373 million, total capital at AZN 11.838 million and authorized capital at AZN 8.003 million.
Rabitabank has been in operation since 1993.