28 October 2020

A General Agreement on Refinancing has been signed between JSC Mortgage Refinancing Company of Uzbekistan and JSCB Uzpromstroybank

On October 28, 2020, Uzpromstroibank JSCB was one of the first commercial banks to sign a General Refinancing Agreement with Uzbekistan Mortgage Refinancing Company (UzKRI). This agreement will provide the bank's clients with the opportunity to apply for mortgage loans on favorable terms not only for the purchase of new housing, but also for the purchase of housing on the secondary market.

As of August 1, 2020, the volume of mortgage loans from banks in Uzbekistan amounted to 25 trillion soums or 4 percent of Uzbekistan's GDP. Lack of long-term resources for banks is one of the main obstacles to the development of the mortgage market in Uzbekistan. By Decree of the President of the Republic of Uzbekistan #5715 dated May 13, 2019 "On additional measures for the development and expansion of the mortgage lending market" serves as an important guide in improving the mechanism for providing mortgage loans and increasing the accessibility of all segments of the population to mortgage loans based on market principles.

The new agreement with JSCB “Uzpromstroibank” provides the bank's clients with the opportunity to apply for a mortgage loan for housing both on the primary and secondary markets with an interest rate of no more than 18 percent and a term of up to 20 years.

“At the initiative of the head of our state, large-scale work is being carried out to provide the population with comfortable, affordable and high-quality housing. At the same time, the increase in the volume of mortgage loans provided by financial institutions on favorable terms serves as an important factor in our compatriots finding their small homeland. Today's agreement will create an opportunity for our bank's clients to receive mortgage loans on even more favorable terms. At the same time, we are pleased that we are one of the first banks to attract resources based on mortgage loans and securitization of the mortgage portfolio," said Chairman of the Board of Uzpromstroibank Sakhi Annaklichev.

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"We are now at a very important stage in the mortgage loan market. Our company, as a non-bank financial institution, specializes in the development of mortgage markets and will provide Uzpromstroibank with long-term resources. We are pleased to closely cooperate with the bank, which is a leader in many aspects and has high potential,” said Murodjon Farmanov, General Director of UzKRI.

Uzpromstroybank is one of the largest commercial banks in Uzbekistan with a wide branch network and provides services to more than 1 million clients.

UzKRI is a non-bank financial institution founded by the Ministry of Finance on November 14, 2019, in order to create a housing stock on favorable terms and develop the domestic mortgage market based on commercial terms. Currently, 12 banks are shareholders of the company.