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One more Azeri bank to launch mortgage program next year

17 September 2008 11:00 (UTC +04:00)

Bakuâ€“ APA-Economics. Azerbaijan-based Rabitabank may launch its mortgage loan lending program next year, said Elchin Gadimov, deputy Chairman of the Bank.
He added that mortgage loans will be distributed through proceeds of funds attracted from foreign financial institutions.
â€œAt present it is not favorable to lend mortgage loans because these funds may be lent as more profitable consumer loans or credits to small and medium-sized businesses,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.