Baku, Azerbaijan, Oct. 11
By Fakhri Vakilov-Trend:
Uzbekistan plans to attract loans from Asian Development Bank (ADB) under the Mortgage Market Development Program, Trend reports referring to Uzbekistan’s Ministry of Finance.
Negotiations were held through a video conference at the ADB office in Uzbekistan on October 8-9, 2019, to attract ADB borrowed funds under the Program for the Development of the Mortgage Market of Uzbekistan as part of the reform of housing policy in Uzbekistan.
During the negotiations, draft loan agreements totaling $200 million were discussed.
The aim of the Program is to create a new institutional structure and financing mechanism to promote market mortgage financing in Uzbekistan, as well as expand the availability of mortgage housing products.
In order to strengthen the targeted support of socially vulnerable segments of the population, ADB is providing a loan of $50 million to Uzbekistan’s Government to introduce new mechanisms for subsidizing housing.
Furthermore, at the expense of ADB borrowed funds in the amount of $150 million, the creation of a new type of financial institution, namely Uzbekistan’s Mortgage Refinancing Company, will be initiated. As expected, it will provide long-term resources in local currency to commercial banks to provide mortgage loans on market conditions.
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