Housing - The Times Of Central Asia

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Kyrgyzstan Housing

State Mortgages in Kyrgyzstan Can Now Be Obtained Without Credit History

On April 15, a law introducing a mechanism called "Shared Housing Construction" within the framework of the program, "My House 2021-2026" came into force in Kyrgyzstan. The program, as defined by the State Mortgage Company (SMC) of Kyrgyzstan, is available to all citizens. According to authorities, Kyrgyz citizens should be able to participate in collective housing developments without risks. According to the new program, citizens can apply for state mortgages without possessing a bank credit history in the country. Furthermore, those wishing to take out a mortgage will not have their incomes checked and will not have to submit to a work history. "Until today, one of the problems of housing provision [for] citizens in the republic was the lack of a state mechanism of equity financing of housing construction. In this regard, President Sadyr Japarov on January 30 this year signed a decree 'On measures to further improve the mechanisms of housing provision and construction of housing for citizens of the Kyrgyz Republic in the field of state housing policy'" - reported the SMC's website. Loans under the program will be issued under certain conditions: the down-payment should be at least 50% of the cost of the housing, the mortgage can be taken for up to 15 years at 8% per annum. Residential mortgage issuance by commercial banks in Kyrgyzstan today operates on more stringent conditions. For example, the interest rate for borrowers starts at 20% with a down-payment of at least one-third of the value of the property. Earlier, Kyrgyz President Sadyr Japarov instructed the Cabinet of Ministers to determine the list of state-owned land plots to be transferred to the SMC.

Finance Uzbekistan Housing

ADB loans to help improve access to housing finance in Uzbekistan

TASHKENT (TCA) — The Asian Development Bank (ADB) has approved $200 million in loans that will help the Government of Uzbekistan reform its housing finance programs and provide families with more affordable mortgage products, ADB’s Country Office in Uzbekistan said. Continue reading

Gender Housing Kazakhstan Finance

ADB to help women access affordable housing finance in Kazakhstan

NUR-SULTAN (TCA) — The Asian Development Bank (ADB) has approved a $100 million local currency equivalent loan to help expand the lending operations of the Housing Construction Savings Bank of Kazakhstan (HSCBK), the main institution implementing government housing finance programs in the country. This will allow more than 3,000 women, particularly in the rural areas, to have access to affordable housing finance, ADB’s country office said on October 25. Continue reading

Finance Rural development Housing Small Business Tajikistan

IFC loan to help homeowners and micro enterprises in Tajikistan

KHUJAND, Tajikistan (TCA) — The International Finance Corporation (IFC), a member of the World Bank Group, says it is providing a $2.5 million loan in local currency to LLC MDO Arvand, one of Tajikistan's leading microfinance institutions, as part of an effort to support home ownership and drive economic growth in the Central Asian country. Continue reading

Housing Construction Economy Kyrgyzstan Finance

Kyrgyzstan: Preferential mortgage lending not affordable for state employees

BISHKEK (TCA) — Parliament deputies and experts are dissatisfied with the results of the state mortgage program in Kyrgyzstan because it is not affordable for state employees. The monthly salary of a teacher with three years of experience is about 6,500 soms ($93), and with 30 years of experience — about 15,000 soms. With such salaries, they cannot afford a state mortgage loan, MPs said. The State Affordable Housing program started in March 2016 to improve the issuance of preferential mortgage loans to state employees. Loans are provided by banks, which are compensated for the difference between market and preferential loan rates. Since November 1, 2018, the rates on newly issued loans under the program have been reduced to 7-9% per annum. Previously, they were from 8% to 12%. The State Mortgage Company OJSC (SMC) is the program operator. According to the SMC head Baktybek Shamkeev, if a citizen wants to obtain a 1 million soms loan, the total family income should be 22-24 thousand soms (around $330) per month. If a person receives a loan of 2 million soms, the total monthly income should be 45-50 thousand soms. Most civil servants in the country do not have such an income, MPs said. Poor program implementation The State Mortgage Company is working poorly on the implementation of the Affordable Housing program because only a limited part of solvent citizens who work in the public sector have received mortgage loans, concluded the Accounting Chamber following the results of the company’s audit. The unavailability of state mortgage for the public sector was affected by the high interest rate resulting from the conclusion of agreements with partner banks with the provision of an added 5% annual rate along with a 3% rate (previously 5%) of a budget loan received from the Finance Ministry. The auditors advised to reduce the cost of state mortgage by reducing the income of the State Mortgage Company and commercial partner banks. Overpriced loans The Affordable Housing program may become unavailable, MP Marlen Mamataliev said. The State Mortgage Company has not achieved good performance due to very high down payment amount and interest rates, he explained. The SMC says that loans are issued at 9%, but in reality people get loans at 14-16%. In addition, the cost of apartments in the houses the company provides is very high, which does not comply with the principles of the Affordable Housing program. For instance, an apartment in a house built in Naryn costs $34.8 thousand. If a teacher or doctor receives it at 9%, he will have to pay 12 thousand soms per month for 15 years. After 15 years, the apartment will cost him $67 thousand. Shamkeev told MPs about the SMC plans to create its own housing stock. Replenishment of capital is planned due to the Government’s contribution, he added. According to the program, it was planned that construction companies would build housing at their own expense, and SMC would redeem. However, not all companies can afford building of...

Real estate Housing Turkmenistan

Turkmenistan: officials, entrepreneurs buy elite property to save capitals

ASHGABAT (TCA) — Apartments are now being sold in new residential houses located in the Olympic village in Turkmenistan’s capital Ashgabat, and Turkmen government officials and wealthy entrepreneurs are buying this elite residential property in an attempt to save their capitals by investing in real estate amid the ongoing depreciation of the national currency, the manat, the independent foreign-based news website Chronicles of Turkmenistan reports. Apartments cost from 780 thousand to 1.3 million manats ($223–$376 thousand using the official rate or $39–$66 thousand at the black market rate). Thirty-year mortgage loans are allocated to purchase apartments but 10% of the total amount needs to be paid straightaway. The website ATN reports that the priority is given to families with many children who share apartments with other families as well as residents who have dependent disabled relatives. Yet, according to the estimates of the news outlet, depending on the loan terms and conditions, an employee will have to make a monthly payment of about 2900 manats. With the average monthly salary of 1000-1500 manats, the majority of Turkmenistan’s population cannot afford to purchase the aforementioned accommodation. However, according to correspondents of Chronicles of Turkmenistan apartments are selling quite quickly. As of late October, 22 apartments out of 118 have been left in one of the apartment blocks. Turkmenistan’s officials and wealthy entrepreneurs are reported to be buying elite residential property not only for themselves, but for their children, grandchildren and even close family members. Moreover, many purchase the accommodation with manats, which are depreciating in their value, in an attempt to save their capitals by investing in real estate and for this reason the majority of apartments in elite houses are vacant. Apart from apartments in high-rise buildings, standard two-story cottages are sold in the suburbs. For instance, a new section of cottages located in the village of Choganly is under construction for the time being. These cottages cost much cheaper – 412 thousand manats ($118 thousand using the official rate or $20.6 thousand at the black market rate).