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Fitch: 80% of mortgage loans in Azerbaijan are provided at state expense

13 November 2025 14:22 (UTC +04:00)

“80% of mortgage loans in Azerbaijan are issued at the expense of the state,” APA-Economics reports, citing the assessment of the international rating agency Fitch Ratings.

It was noted that approximately 80% of mortgage loans granted to households in the country are implemented through the Mortgage and Credit Guarantee Fund (MCGF). By directing low-interest financial resources to the market, the Fund increases housing affordability and acts as the main executor of the state’s national housing policy.

“The Fund is a profitable state institution that is non-commercial in nature but supported by low-cost financial resources. In 2024, its profit amounted to 23.2 million manats and remained unchanged compared to the previous year. The increase in interest income due to the gradual expansion of the loan portfolio was offset by the rise in labor costs. The quality of assets remains strong — the share of non-performing loans is less than 0.1% of the mortgage and rental housing mechanism portfolio,” the rating agency’s statement emphasized.

Recall that “Fitch Ratings” has affirmed the MCGF’s long-term foreign and local currency ratings at the “BBB-” level, maintaining the outlook as “Stable.”