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Azerbaijan will tighten mortgage lending terms

27 February 2009 16:51 (UTC +04:00)

Baku. Elnur Huseynguliyev - APA, Economics. The National Bank of Azerbaijan (NBA) will restart funding mortgage loans.
Elman Rustamov, the Chairman of the National Bank of Azerbaijan, said a request will soon be sent to the government to seek permission for the issue of secured debt securities by the Azerbaijan Mortgage Fund (AIF).

According to him, the sale of debt securities to banks and their liquidity in the market will revive the mortgage lending.
Elman Rustamov said that interest rates on mortgage loans will not change because of some problems on the solvency of the population.
â€œHowever, due to the global financial crisis, the rules for mortgages should be slightly tightened. It is known that the main risks for loans fall on banks. But the NBA does not want the banks to bear these risks. In the face of financial crisis, it can lead to very serious consequences,â€ he added.