Azerbaijan sets to have new mortgage plan

By AzerNews

The Central Bank of Azerbaijan has prepared a new mortgage program and will submit it to the government soon, CBA Chairman Elman Rustamov said at a conference held September 6.

"First, we propose expanding the coverage of the social mortgage," Rustamov said at the opening of the scientific conference, "Regulation of the capital market in the new era: Rethinking of the regulators and market institutions", devoted to the 15th anniversary of Azerbaijan's State Committee for Securities (SSC).

"The cost of housing, which will be bought under the social mortgage, as well as its repair, is very important. This problem is more important than the interest rates and the initial fee. According to international experience, including that of neighboring Turkey and Kazakhstan, we offer to link the expansion of social mortgage to the construction of economical and comfortable housing on the basis of a partnership between the private sector and the state."

According to Rustamov, the main objective of the new social mortgage program is to ensure automatic access to mortgages through the population's own savings.

"This is the German model of the construction savings banks. Our bill is ready and is included in the strategy. The terms of such a mortgage should be softer than the terms of the social mortgage."

Rustamov also touched on the issue of changing the design of the currency and issuing new banknotes, saying that specific steps in this regard are not on the current agenda of the CBA.

"It is not known when the macroeconomic climate will be favorable for this. This is not only a prerogative of the central bank, it is done upon a decision of the committee on monetary reforms at the Cabinet of Ministers. Issuing large denomination banknotes is not ruled out and in this case issuing coins in the denomination of one manat cannot be excluded either. But now concrete steps are not being taken in this direction," Rustamov said.

In the frame of the conference a memorandum of understanding on the exchange of information between Azerbaijan's State Committee for Securities and the State Commission for Securities and Stock Market of Ukraine was signed.

Under the memorandum, the sides agreed to exchange information in the detection of insider trading in the securities market, market manipulation and other illegal activities, compliance of the domestic legislation in the area of production and sales of securities, ensuring high standards of transparency and fairness in the market, as well as the disclosure of information about securities, which is necessary for investors.