Baku, Azerbaijan, April 8, 2009
—IFC, a member of the World Bank Group, has helped establish the first residential property appraisal system in Azerbaijan that will help people use real estate as collateral for obtaining bank loans and support development of the local mortgage market.
About 70 percent of bank loans in Azerbaijan are collateralized by real estate. In the current economic environment, the level of foreclosures and mortgage-loan restructurings are expected to rise, making appraisal issues especially important for both lenders and borrowers. After a year-long effort, IFC has launched an appraisers’ certification system in the country that should help improve appraisal practices and minimize systematic risks.
Victor Mints, Project Manager for the IFC Azerbaijan and Central Asia Primary Mortgage Market Development Project noted that a properly functioning property appraisal system will help guarantee objectivity of appraisers and raise their level of professionalism. “This system is vital for ensuring resolution for lenders and borrowers,” he said.
“We thank IFC for helping create this ground-breaking certification system that will strengthen qualifications of appraisers, which is particularly critical during tough times,” said Ibrahim Guliyev, Chairman of the Azerbaijan Society of Appraisers. “We hope to cooperate further with IFC in adapting and implementing the system at the national level.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
