Uzbekistan, IFC discuss reforms in mortgage market

Uzbekistan, IFC focus on reforms in mortgage market

Tashkent, Uzbekistan (UzDaily.com) — On June 21, 2021, a web based assembly was held with the minister of finance of the Republic of Uzbekistan Timur Ishmetov, undertaking administration coordinator of the Worldwide Finance Company Daniel Sousa, and a delegation led by Chief Professional Pamela Hedstorm.

The assembly was attended by finance minister Omonullo Nasritdinkhodjayev and Odilbek Isakov, director of the division of financing and growth of the mortgage lending market Farrukh Botirov and staff of this division.

The assembly was additionally attended by consultants of the Worldwide Finance Company Maria Turetski, Elena Klepikova, Natalia Pastukhova, Stephen Orleski and others.

Since 2018, Finance Minister Timur Ishmetov has been cooperating with the Asian Growth Financial institution to implement structural reforms to develop the mortgage market in Uzbekistan, enhance current legislative paperwork, particularly, with the participation of the Ministry of Finance and business banks, create an Uzbek firm for refinancing mortgage loans, allocate long-term funds from this firm, from the account of those funds, business banks supplied data to the inhabitants that mortgage loans are allotted out there for the acquisition of housing within the main and secondary markets, in addition to loans for housing repairs.

On the identical time, T. Ishmetov emphasised the necessity for additional reform of the mortgage market on the premise of worldwide greatest practices, enhancing the follow of mortgage lending to business banks, increasing the scope of banking companies with a purpose to meet the demand of the inhabitants for housing at this time.

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On the assembly, Pamela Hedstorm expressed her opinion on the measures taken to develop the housing market in Uzbekistan.

The chief professional famous that the federal government of Uzbekistan has achieved important outcomes on this space on account of housing building and improved coverage within the mortgage market within the final 2017-2020 years. In addition they mentioned the event of an idea for the event of the mortgage market, the creation of an organization for refinancing mortgage loans and the introduction of mortgage lending schemes primarily based on market rules.

On the on-line assembly, undertaking administration coordinator Daniel Sousa mentioned that the extent of housing provision in Uzbekistan in 2010 was 15 sq. m. from 2020, 16 sq. m. it was famous that there’s progress, however nonetheless lagging behind the extent of growing international locations, though the amount of mortgage lending is rising, however nonetheless stays low within the nation.

He additionally mentioned that the principle objective of the IFC is mortgage lending in Uzbekistan, and the development of homes is to additional improve the market progress potential. To do that, throughout the framework of the associate program:

– consider the technical capabilities of mortgage market individuals, together with the demand of the inhabitants for housing and mortgage loans, in addition to business banks and mortgage refinancing corporations;

– research of legislative acts on the event of the mortgage market and put together proposals for making modifications and additions to them, primarily based on the obtainable alternatives;

– improve the provision of housing to the inhabitants by means of the research of building organizations (builders) engaged within the building of homes, the introduction of a contemporary system of financing the development of homes, particularly by means of “Escrow” accounts;

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– rising the recognition of loans by additional increasing the kinds of mortgage loan servicing by business banks, together with the introduction of a mortgage deposit system (housing and building financial savings deposit);

– primarily based on the event of the capital market, it’s geared toward rising the probabilities of attracting long-term funds to the mortgage market, together with creating circumstances for the issuance of mortgage-backed securities.

On the assembly, the principle duties for the profitable implementation of this system throughout the framework of cooperation had been recognized and state assist was introduced.