Tashkent, Uzbekistan (UzDaily.com) -- On 28 October 2020, Uzpromstroybank, one of the first among commercial banks, signed a general refinancing agreement with the Uzbekistan Mortgage Refinancing Company (UzKRI) in the amount of 337 billion soums. 

This will provide the bank’s clients with the opportunity to obtain mortgage loans on favorable terms not only for the purchase of new housing, but also for real estate in the secondary market.

As of 1 August 2020, the volume of mortgage loans from banks in Uzbekistan is 25 trillion soums, or 4 percent of the country’s GDP. However, the lack of long-term resources for banks and developing secondary mortgage markets is one of the main problems in the development of the mortgage market in Uzbekistan.

The decree of the President of the Republic of Uzbekistan from 13 May 2019 "On additional measures to develop and expand the mortgage lending market" serves as an important guide to action in improving the mechanisms for providing mortgage loans and increasing the accessibility of all segments of the population to mortgage loans based on market principles.

A new agreement signed between Uzpromstroybank and a mortgage refinancing company in Uzbekistan provides an opportunity for our compatriots to obtain a mortgage loan for housing both in the primary and secondary market based on an 18 percent interest rate per annum for up to 20 years.

“At the initiative of the head of our state, large-scale work is being carried out to provide the population of our country with comprehensively comfortable, affordable, high-quality housing. At the same time, the increase in the volume of mortgage loans provided by financial institutions on favorable terms serves as an important factor in finding our compatriots their small homeland. Today’s agreement will create an opportunity for our bank’s clients to obtain mortgage loans on even more favorable terms. At the same time, we are satisfied that we are the first bank to attract mortgage loans based on refinancing and securitization of mortgage loans,” said Aziz Akbarjonov, First Deputy Chairman of the Board of Uzpromstroybank.

“We are now at a very important stage in the mortgage market. Our company, as a non-bank financial institution specializing in the development of mortgage markets, provides Uzpromstroybank with long-term resources. We are glad to cooperate closely with a leading financial institution in many aspects, which has high potential in the banking sector and no less high goals,” said General Director of UzKIRF Murodzhon Farmanov.

Uzpromstroybank, as one of the largest commercial banks in Uzbekistan, now has an extensive network of branches throughout the country and provides services to more than 1 million retail clients.

The Uzbek Mortgage Refinancing Company as a non-bank financial organization was established by the Ministry of Finance on 14 November 2019 in order to create a housing stock on favorable terms and develop the domestic mortgage market based on commercial terms. Currently, 12 banks are shareholders of the company.