14 November 2022

Signing ceremony of the agreement between the Asian Development Bank and the Joint Stock Company "Uzbekistan Mortgage Refinancing Company"

On November 14, 2022, within the framework of the Program for the Development of the Mortgage Market of Uzbekistan, another agreement was signed between the Asian Development Bank (ADB) and the Joint Stock Company "Uzbekistan Mortgage Refinancing Company" (the Company).

Under this agreement, the Company provides refinancing of mortgage loans, including "green" mortgage loans issued for repairs. In the process of cooperation with the ADB, the Company assumed obligations to refinance 5,000 units of mortgage loans issued to women and 1,000 units of mortgage loans issued for "green" repairs. In this regard, the Company, together with commercial banks, plans to develop requirements and a mechanism for issuing "green" mortgages mortgage loans for repairs.

We remind you that on December 19, 2019, as part of the Mortgage Market Development Program, ADB provided a loan in the amount of 150 million US dollars for the purpose of refinancing mortgage loans for housing and repairs by the Company, allocated by commercial banks to the population. To date, these loan funds have been fully utilized, and as of October 1, 2022, 11,060 mortgage loans have been refinanced in the amount of 1.94 trillion soums. Of these, 3,434 mortgage loans issued to women were refinanced, i.e. 31% of the total portfolio refinanced by the Company.

During the ceremony, the Company's CEO noted that "The latest agreement signed with ADB is a great help in implementing reforms in the mortgage lending market, including allocating resources for energy-efficient (“green”) renovation, expanding the allocation of mortgage loans for women and providing regular resources to the mortgage market."

Enrico Pinali, Acting Country Director of ADB in Uzbekistan, noted the following “We hope that this credit line will expand the financing opportunities for residential mortgage products, including their “green” financing, and will bring a new type of mortgage product to the banking sector."