Deputy Kubanychbek Samakov asked at a meeting of the Committee on International Affairs, Defense, Security and Migration why Kyrgyzstan takes a loan of $79 million from Saudi Arabia at 1 percent per annum, while selling apartments built using this money to the population at 8 percent per annum.
Deputies discussed in the second reading and approved the agreement between the Kyrgyz Republic and the Islamic Development Bank on the project «Financing affordable housing according to Sharia standards».
The agreement provides for the construction of residential buildings and the issuance of apartments under a mortgage. The amount of preferential financing is $79 million. According to forecast calculations, about 2,000 families will be provided with housing.
Deputy Kubanychbek Samakov asked why, under the agreement, the loan is provided at 1 percent per annum, while the mortgage for the population is 8 percent.
Deputy Minister of Economy and Commerce Choro Seitov responded that the State Mortgage Company is the operator of the attracted financial resources, and will provide land plots and finance the construction of affordable housing in all regions of the country for subsequent lease with subsequent purchase.
«There are three types of mortgages — social, preferential and affordable. The interest rate is from 4 to 8 percent per annum. When the interest rate increases, operating expenses and currency risks are taken into account,» Choro Seitov said.
