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President of Kyrgyzstan believes that state mortgage rates should be reduced

The President of Kyrgyzstan Sooronbai Jeenbekov got acquainted with implementation of the state program of mortgage lending. The Information Policy Department of the Presidential Administration reported.

According to it, the president received the Finance Minister Adylbek Kasymaliev and the Chairman of the State Mortgage Company Baktybek Shamkeyev. The head of the company said that 3,450 mortgage loans for 3.7 billion soms at 8-10 percent per annum had been issued.

The State Mortgage Company will reduce interest rates to 7 percent for employees of the public sector from autumn 2018.

Baktybek Shamkeyev

In addition, the company is planning to implement a mechanism for the construction of economy-class housing for lease with subsequent redemption. Such a system does not require an initial contribution and involves a rate of up to 6 percent. A five-story 60 apartment economy class house is being built in Naryn and a 135-apartment nine-storey building in Bishkek’s Tunguch microdistrict.

According to the Ministry of Finance, 1.3 billion soms have been allocated from the budget in 2017 for implementation of mortgage lending, in 2018 — 1.5 billion soms.

In 2019, the amount of mortgage lending is planned to be increased to 2 billion soms.

«The 8-10 percent rate remains difficult to pay for citizens working in the budgetary sphere. It is necessary to accelerate the work on reducing interest rates on the state mortgage,» the head of state said.

Sooronbai Jeenbekov believes that economy-class housing should be built in cities that are defined in the Concept of Regional Development as «points of growth.» In this case, the cost per square meter of housing should be low and affordable for the majority of the population.