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Fitch Ratings: Central bank currently holds about 80% of MCGF's outstanding bonds

13 November 2025 13:58 (UTC +04:00)

"The central bank's buyback guarantee on the fund's bonds is another form of support, under which the bank is obliged to buy back bonds from bondholders on request. The central bank currently holds about 80% of MCGF's outstanding bonds," APA-Economics reports, citing the assessment of Fitch Ratings international rating agency.

It was noted that MCGF's financial profile is underpinned by ongoing and substantial state support, reflected in its stable but modest profitability and resilient business model.

Fitch notes that the fund receives annual capital injections from the state, totalling AZN172.7 million in 2024-2025, which it has used to finance social mortgages. The fund is one of four organisations in the country that are exempt from the payment of income tax. The state provides indirect support through special risk group classification of the fund's bonds and its products, increasing their attractiveness for banks, compared with commercial bonds.

Fitch expects regulatory and political influence to remain strongly supportive of MCGF, at least in the medium term. The state plans to provide AZN100 million of financing in 2026. Most of these funds are for the provision of social mortgages, but also for subsidising loans to SMEs.