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Mortgage becoming more affordable in Uzbekistan

20 July 2018 18:42 (UTC+04:00)
Mortgage becoming more affordable in Uzbekistan

By Sara Israfilbayova

Additional measures are taken to improve the mechanisms for implementing programs for the construction of affordable houses on the updated standard projects in rural areas and affordable apartment buildings in Uzbekistan for the current year.

President of Uzbekistan Shavkat Mirziyoyev signed a relevant decree on July 18, Uzbek media outlets reported.

According to the document, participating commercial banks Kishlokkurilish Bank, National Bank for Foreign Economic Activity, Ipoteka Bank, Halk Bank, Asaka Bank and O’zsanoatqurilishbank will present from July 1, 2018 to January 1, 2020 mortgage loans for a period of 20 years with a 3-year grace period and an interest rate of 7 percent per annum for the first 5 years.

The Ministry of Finance was instructed to open credit lines in national currency for the period of 20 years at the request of participating commercial banks for the construction of affordable houses for families in need of better housing conditions, including a 5-year grace period, at a rate of 3 percent per annum for the first 5 years and in the amount of the refinancing rate of the Central Bank in the subsequent period minus the margin of participating commercial banks at a rate of 4 percent per annum.

It follows from the decree that in 2018 additional funds will be allocated from the state budget to finance the construction of residential buildings in rural areas. Expansion of the mortgage market of Uzbekistan, as it follows from the document, will take place with the participation of the Asian Development Bank, Islamic Development Bank, Saudi Fund for Development.

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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is

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