President recommends considering lowering mortgage interest rate

Bishkek, Sept.12, 2019. /Kabar/. Kyrgyzstan’s President Sooronbay Jeenbekov received Chairperson of the Board of Directors of the State Mortgage Company (SMC) OJSC Elmira Abzhaparova.
The President’s press service reported that the sides discussed measures to improve state policy in the area of providing citizens with affordable housing and the state housing mortgage lending system.
Jeenbekov reminded that SMC faces the task of increasing the availability of mortgage loans for the citizens of the country taking into account the solvency of the population.
In addition, he recommended considering lowering mortgage interest rate.
The chairperson informed so far the SMC has taken an active course to attract donor funds in order to move away from the dependence of budget funding.
She added there is active work with international financial institutions, development of grant funds of the KFW German bank will begin in the near future.
Referring to the issue of interest rate reduction, the SMC head said the company plans to start the process of granting mortgage loans under 6% in the near future. The possibility of reducing the interest rate on existing loans to 7% is also being considered.
To date, the SMC have issued more than 4 thousand mortgage loans worth about KGS 5 billion.
Abzhaparova noted active work is underway to introduce a new system of contractual housing savings through the establishment of a non-banking specialized financial and credit organization.
A distinctive feature of this system is the possibility of gradual accumulation of savings from citizens, including those working abroad to form an initial contribution.