Central Bank Accepted CESD Recommendations on E-Mortgage

Azerbaijan's Central Bank has drafted a project to introduce electronic mortgages as part of its work to make the mortgage system more convenient which recommended by Center for Economic and Social Development (CESD) in 2010.

CESD submitted recommendations to the Government of Azerbaijan in April, 2010 (Azeri version of recommendations can be obtained at http://www.cesd.az/m127.htm). Central Bank announced that electronic mortgage system which CESD recommended will be applied in Azerbaijan soon. Electronic mortgage system will reduce direct relations between customers and bank representatives which are expected to reduce corruption level as well. Meanwhile, new system will allow customers to save time and procedures.  New system is also expected to reduce bureaucratic obstacles in the system

"The electronic mortgage is designed to speed up the mortgage process and to make the system more convenient for the end consumer. It will allow all mortgage-lending operations to be conducted via the Internet and depends on the introduction of a digital signature system," Eldar Ismayilov, president of the Association of Banks of Azerbaijan told to news.az. "This involves a lot of issues – administrative procedures, registration with notary's offices, deposits. The whole process needs simplifying. For example, it can take six months to realize a deposit through the courts. Proposals on all these problems have been drawn up and will be submitted to the Central Bank in the near future," he said.