Bank Of Baku

Azerbaijan may resume government-funded mortgage lending

Azerbaijan may resume government-funded mortgage lending
# 06 April 2009 12:35 (UTC +04:00)
Baku. Nijat Mustafayev - APA-Economics. The government-funded mortgage loan lending is likely to restart in Azerbaijan, said Elman Rustamov, The chairman of National Bank of Azerbaijan.
According to him, some experts view the mortgagelending as a dangerous tool today as the world financial crisis originated from mortgage lending.
“1700 mortgage loans were lent through Azerbaijan Mortgage Fund in 2008. Studies have shown that there has been no delay in repayment of mortgage debt in Azerbaijan. This is due to the implementation of appropriate monetary policy. If this type of mortgage loans justifies itself, it is possible to resume government-funded mortgage lending,” he added.
In his words, mortgage multiplier is 5x or mortgage funds worth AZN 1 brings about economic growth worth AZN 5.
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