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Kazakh Housing Guarantee Fund to be capitalized by 10 bln tenge

11 October 2017 16:28 (UTC+04:00)
Kazakh Housing Guarantee Fund to be capitalized by 10 bln tenge

By Kamila Aliyeva

Kazakhstan takes further measures to avoid risks existing in the construction industry of the country.

The Kazakh Housing Guarantee Fund JSC will be capitalized by 10 billion tenge this year.

This was announced by the chairman of the Fund’s board Dauren Onayev at a briefing in the Central Communications Service (CCS), Kazinform reported.

"Last year, literally in parallel with the entry into force of the Law “On the Equity Participation in Housing Construction”, the Fund was re-capitalized to 10 billion tenge from the state budget. In addition, by the end of this year, the republican budget for 2017 envisages capitalization of the guarantee fund by 10 billion tenge," he said.

The chairman also noted that this amount is enough to ensure that the Fund is stable.

"We believe this is a sufficiently adequate volume from which we begin this activity, and this indicates that the Fund will be solvent, stable and reliable enough. That is, putting certain requirements on the developer, we should understand that we ourselves must be strong enough and reliable," he added.

Onayev also explained, under which circumstances, a warranty event occurs in case of shared construction.

"Non-targeted use of money, bankruptcy of the developer or violation of the deadlines for commissioning are the three reasons under which the warranty occurs and we become managers of the project. We completely remove the builder from the process and become managers on this object. We take an authorized company, that is, a project LLP, which is engaged in this project in the trust management and we will finance it in the amount that is not sufficient in view of the available amounts of the developer himself and the amounts that he attracted from the equity holders. We monitor the safety of these funds up to the last tenge. We are accountable to the equity holders. In this case, we will fully disclose all actions, on a weekly basis, as well as post information on the progress of construction and the allocation of funds and their use,” he said.

The chairman also stressed that the Fund further ensures accomplishing the construction of problem object and the transfer of apartments to the equity holders.

"After that, we will deal with the developer within the framework of the law while the equity holders will not be involved. We also have the right, as trustees, to realize those apartments that remained free and at this expense reimburse our costs," he concluded.

The mission of Housing Construction Guarantee Fund JSC is housing the population through the development of shared-equity housing construction. The main activity of the Fund is to provide guarantees for the completion of construction of residential buildings.

The introduction of a mechanism of housing construction guarantee is expected to facilitate the realization of the state program of infrastructure development "Nurly Zhol" for 2015 - 2019, namely, mitigate risk existing in the construction industry, increase the availability of housing to the general public, contribute to an increase in the pace of housing construction.


Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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