Tashkent, Uzbekistan (UzDaily.com) -- The Presidential Decree “On additional measures to improve the mechanisms for issuing mortgage loans and improving the living conditions of the population in 2024” was adopted.

According to the Decree, within the framework of the Program for providing the population with housing through mortgage loans based on market principles (the Program), the following will be implemented:

multi-storey residential buildings consisting of 100,000 apartments will be built in the regions;

construction organizations will be provided with compensation and guarantees for loans issued on the basis of market principles;

“green” housing standards will be introduced into the construction processes of multi-storey buildings;

at least 17 trillion soums will be allocated to finance mortgage loans;

persons included in the Poverty Alleviation Program and in need of improved housing conditions will be allocated mortgage loans in the amount of up to 120 million soums for the construction, reconstruction and repair of individual housing;

The Ministry of Economy and Finance will widely use mechanisms for refinancing mortgage loans allocated from banks’ own funds.

According to the Decree, from 1 June 2024, based on the recommendation of the Mahalla Seven, the practice of providing mortgage loans to persons included in the Poverty Alleviation Program and in need of improved housing conditions will be introduced.

Applications for housing subsidies will be accepted from 15 May to 1 November.

According to the Decree, the following changes will be made to the current procedure for paying subsidies under the Program, according to which:

applications for subsidies within the approved parameters will be accepted from May 15 to November 1, 2024;

subsidies to compensate for part of the interest payments on loans allocated under the Program for 2024 will be paid in excess of 12% interest, and for loans allocated under the Programs for 2025 and subsequent years - in part exceeding the main rate of the Central Bank;

subsidies to compensate for part of the down payment on mortgage loans allocated for the purchase of apartments on the primary housing market, starting from Programs for 2024 will be paid in a fixed amount - 30 million soums.

The requirement to insure the subject of the mortgage when issuing mortgage loans for the purchase of apartments on the primary housing market will be canceled

According to the Decree, a Mortgage Support Fund (Fund) will be created.

From 1 May 2024, a procedure will be established according to which:

when issuing mortgage loans for the purchase of apartments on the primary housing market, the requirement to insure the subject of the mortgage against insurance risks will be abolished;

the right to build multi-storey residential buildings will also be granted to construction organizations that have an electronic rating of “C” and “SS” in the National Information System “Transparent Construction”.

At the same time, organizations with an electronic rating of “C” will be allowed to build housing with no more than five floors, and with an electronic rating of “SS” - housing with no more than nine floors;

until 1 January 2025, when importing new construction and special equipment, a zero customs duty rate will be applied;

to replenish the working capital of construction organizations involved in the construction of multi-storey residential buildings in the Yangi Uzbekistan areas, funds in the amount of 500 billion soums will be allocated from the budget;

for loans allocated to construction organizations in national currency for the construction of residential buildings with 9 or more floors in the city of Tashkent, 7 or more floors in other cities, 5 or more floors in rural areas, guarantees and compensation will be provided for a period of no more than 24 months according to the “1+1” principle based on the category of regions.

“Green” mortgage loans will be allocated to individuals.

According to the Decree, from 1 January 2025, construction organizations for the construction of multi-apartment residential buildings based on “green” housing standards will be provided with loans at a rate exceeding the main rate of the Central Bank by one percentage point.

By 1 October 2024, “green” housing standards will be approved.

Before 1 April 2025, the practice of allocating “green” mortgage loans to individuals for the purchase of housing built on the basis of the requirements of “green” housing standards will be introduced.

Wherein:

- mortgage loans will be allocated in the amount of up to 120 million soums for a period of up to 20 years at a rate exceeding the main rate of the Central Bank by four percentage points for the purpose of construction, reconstruction and repair of individual housing;

- for mortgage loans, subsidies will be paid to compensate for part of the down payment in the amount of 15 percent of the allocated loan, as well as to cover part of the interest payments exceeding 12 percent during the first 5 years of the loan term.