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Kyrgyzstan launches new housing program

A new housing program «My Home — 2021-2026» is launched in Kyrgyzstan. The Chairwoman of the State Mortgage Company Aida Tologonova told at a press conference.

According to her, mortgage lending will become more affordable for the population. Special mechanisms are being introduced for it.

The main directions of the program:

  • Increasing availability of mortgage lending by reducing the rate to 4 percent per annum, as well as development of a rental housing mechanism with its subsequent purchase;
  • Attraction of money to the state mortgage lending sector through issue and placement of securities;
  • Formation of own housing stock;
  • Work with international donors on attracting investments.

At least 30 billion soms will be allocated for implementation of new housing program and about 800,000 square meters of housing will be built.

«A gradual reduction of the final interest rate on previously issued mortgage loans to 4 percent per annum is also planned. In the near future, the State Mortgage Company will begin to revise the terms of cooperation with partner banks on transfer of the portfolio in favor of the company, due to which the banks’ margin will be excluded. It is planned to exclude mandatory requirement for an initial payment for the purchase of housing,» Aida Tologonova said.

Prior to that, mainly civil servants and public sector employees could get the affordable housing through the State Mortgage Company.