Central Bank to approve CESD Recommendations Package

Central Bank to approve CESD Recommendations Package

Central Bank of Azerbaijan announced that new changes into the mortgage lending rules will be introduced soon. Amendments package has already discussed in the government and will be submitted to the Parliament on November, 2011.

New amendments will be done based on CESD recommendation package submitted to the Government of Azerbaijan on June, 2011 ( Russian version of some recommendations are available at http://cesd.az/new/2011/06/russian-максимальный-объем-социальной-ипот/?lang=ru or http://cesd.az/new/2011/09/russian-ипотека-должна-стать-более-доступно/?lang=ru )

According to the CESD recommendations, the volume of the mortgage lending are recommended to be rised double. Interest rate for social mortgage loans will be decreased double since interest rate for economy loans are recommended to be reduced from 8 % to 6 %.  Number of documents required to apply to mortgage loans is recommended to reduce twice by applying electron mortgage system. Mortgage insurance system is recommended to be set up in order to cover first tranche payments.

 

 

 

 

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