MORTGAGE LENDING INCREASES BY 44% THIS YEAR

In 2021 as well, the Mortgage and Credit Guarantee Fund (MCGF) continues financing of mortgage lending through the social policy run by the government in the field of housing provision of population in accordance with the objectives set.

Over 11 months of the current year, the authorized banks issued AZN 325 M. mortgage and social mortgage loans to more than 4880 families which is the highest amount of annually issued mortgage loans so far. The number of mortgage loans issued increased by 44% compared to the same period of 2020. The mentioned number is predicted to increase by the end of the year.

In general, since 2006 the total amount of mortgage loans issued has passed AZN 1,969 B., the number of families improved their housing conditions 36 K.

34% of loans issued so far belongs to people from preferential categories, 69% to the young and young families. 22% of all loans has been issued in the regions.

In the current year, through mortgage lending the MCGF supported the sale of aparments belonging to the State Housing Development Agency as well. In 2021, mortgage loans have been issued in amount of AZN 44,6 mln. for purchasing 1063 apartments. In general, for financing social aparments 2725 families have been provided with preferential mortgage loans in amount of AZN 118,1 mln., 38 families with mortgage loans in amount of AZN 1,3 mln. since 2018.

Specially it should be noted, the favorable terms of issuance of both mortgage and social mortgage loans led to the formation of high demand for these loans. Thus, over the 11 months of 2021, the solvent demand for mortgage loans was more than AZN 1,1 B. The possible measures are taken by the Fund to meet the demand for loans through the relevant resources.  

Moreover, the significant increase in the amount of loans has not been affected the quality of the current credit portfolio of the Fund. The Fund has formed fairly sound credit portfolio on the basis of strict standards and adequate assessment. Currently, there is no problem loans in the loan portfolio, so this is considered to be the best figure both in the international practice and financial-banking system of the country.