The privileges for Qishloq Qurilish Bank were provided in line with the presidential resolution “On creation of Qishloq Qurilish Bank open joint stock commercial bank” from 30 March 2009.

In line with the resolution, the bank was exempted from payment of income tax and property tax, as well as customs payments for imported banking equipment and tools (except registration fee) till 1 January 2012. Now, the Uzbek leader extended the privileges till 1 January 2016.

The Board of Directors of the Asian Development Bank (ADB) approved multitranche financing facility for the Housing for Integrated Rural Development Investment Program, of which US$499 million will be used to implement component “Credit line for providing mortgage loans” and US$1 million to implement component “Development of potential and support project management”.

According to the presidential resolution, the project “Development of habitation construction in rural area” will be implemented in 2012-2015.

The financing will be issued in four tranches. The ADB management approved the first tranche at the size of US$160 million on 9 September 2011. The loan will be issued from ADB ordinary capital for 18 years with three-year grace period.

The resolution said that second, third and fourth tranches within the programme will be also issued from ordinary capital resources of the ADB after Uzbekistan submits applications and the ADB management approve them.

The document said that Ministry of Economy of Uzbekistan is executive body on implementation of the project “Development of habitation construction in rural area”, targeted and effective use of loan resources, as well as monitoring of its implementation.

Qishloq Quriliash Bank is agent on implementation of the component “Credit line for providing mortgage loans”. It will also participate in implementation of next tranches along with other commercial banks of Uzbekistan.

The resolution said that mortgage loans for individual houses construction on standard projects will be issued at the volume of 1000 sizes of minimal salary for 15 years, including one year of grace period. Interest rate is 7% APR.