28 October 2020

JSC Mortgage Refinancing Company of Uzbekistan has signed its first General Refinancing Agreement with AKIB Mortgage

JSC "Uzbekistan Mortgage Refinancing Company" (UzKRI) signs the first General Refinancing Agreement (GRA) with Ipoteka Bank. This is a non-binding mortgage credit line that allows Ipoteka Bank to finance mortgage loans in the primary and secondary housing markets. UzKRI resources have a number of advantages over existing and previous funding resources for the bank:

• Availability of loans - mortgages are intended for households with average and low incomes to purchase housing, which increases the bank's client base.
• Long loan term - the bank can lend for up to 20 years.
• Possibility of obtaining a mortgage to purchase real estate on the secondary housing market
• Possibility of lending for home renovation
• Mortgage loans are issued to residents of Uzbekistan.

As reported by the Chairman of the Board of Mortgage Bank Shukhrat Atabev: "Today, Ipoteka Bank is one of the leading banks in the Republic in issuing mortgage loans. The amount of issued mortgage loans is 7.7 trillion soums, with a total of 55 thousand loans. Since the beginning of the current year, Ipoteka Bank has issued mortgage loans for 2.7 trillion soums and provided housing to 14,215 people. The Ipoteka Bank team and I personally are glad that we were among the first to sign the General Agreement on refinancing with UzKRI and will continue to work together in the future. UzKRI General Director Murodjon Farmanov said that “The company was established in accordance with the Presidential Decree No. 5715 “On additional measures for the development and expansion of the mortgage market”, the main goal of which is to promote affordable housing. At the initial stage, UzKRI will lend to commercial banks with funds attracted from the ADB. The company's loans will strengthen the President's initiative to develop the mortgage market and meet the growing demand for affordable housing through the use of the latest financial solutions. We look forward to expanding our partnership with Ipoteka Bank in the future, using securities that will take our relationship to the next level."

About Ipoteka Bank

Ipoteka Bank is the largest mortgage lending bank in the country with total assets of 28.7 trillion soums as of October 1, 2020. The bank serves 2.5 million private and 51 thousand corporate clients through 165 branches and banking service centers throughout Uzbekistan.

About UzKRI

UzKRI is a non-banking financial institution established on November 4, 2019, by the Ministry of Finance with the aim of promoting affordable mortgages and developing the domestic mortgage market on commercial terms. The company's shareholders are 12 banks, including 8 state-owned and 4 private. UzKRI's resources are aimed at supporting banks and ensuring access to long-term affordable housing financing for new mortgage borrowers.