USD 69.34
EUR 84.89
RUB 1.22

Germany allocates €11 million for mortgage lending development

Under the agreement on financial cooperation between Kyrgyzstan and Germany, the German Development Bank (KfW) will provide the government with a grant of €11 million for the development of mortgage lending in the rural areas and the construction of economy class housing. This was announced during the presentation of the project the day before.

The money will be allocated to increase the capital of State Mortgage Company JSC. €10.5 million in som equivalent will be distributed among the participating banks for a period of up to 15 years. The remaining €500,000 will be spent on the services of consultants, as well as on the technical support of member banks and the State Mortgage Company. At the same time, five commercial banks will be selected to participate in the project.

The housing financing program implies providing residents of the regions of Kyrgyzstan with mortgage loans in the national currency for the purchase of social housing. Bishkek and Osh are not included into it.

The money will be available for the purchase of new housing worth €15,000-30,000 in som equivalent or for the construction of a house. At the same time, it is worth noting that loans with the support of the German Development Bank will be available to everyone, not just to the state employees, as it is now.