BAKU, Azerbaijan, May 21. Based on the results
of the first quarter of 2025, there have been no significant
changes in the lending standards for both domestic mortgage loans
and those provided through the Mortgage and Credit Guarantee Fund
(MCGF), Trend
reports via the Central Bank of Azerbaijan (CBA).
CBA noted that banks do not anticipate any changes in lending
standards for overall mortgage loans, including those issued via
the MCGF, in the coming quarter.
“According to responses from surveyed banks, demand for total
mortgage loans continued to rise in the first quarter of 2025. The
increase in demand was primarily observed in mortgages provided
through the MCGF. This growth was driven by the allocation of
limits to authorized banks by the MCGF at the beginning of the year
to continue issuing mortgages, including concessional loans.
Banks expect the rising demand trend for MCGF-backed mortgages
to continue, while demand for domestic mortgage loans is projected
to remain stable.
The survey also revealed that banks’ lending standards for
mortgage loans have been influenced by factors such as financing
costs, inflation, and expectations for the real estate market,
which have exerted tightening pressure. Overall, the results
suggest that the pace of growth in banks’ mortgage portfolios is
expected to persist into the next quarter,” the CBA report
reads.
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