Modernization of the mechanism mortgage loans to provide affordable housing for the entire population in the Kyrgyz Republic

Abstract

The issue of housing in Kyrgyzstan is currently considered one of the most urgent. One of the solutions to the issue of providing affordable housing is the issuance of a preferential loan. Currently, the Kyrgyz Republic is modernizing the mechanism of mortgage housing lending aimed at providing affordable housing for representatives of all categories of the population. In 2021 Through the efforts of the Cabinet of Ministers, a lot of work has been done on preferential mortgage lending to the population on the terms of the longest possible contract period, reducing interest rates with a favorable repayment period. As a result, interest rates were reduced to 4% per annum (for certain categories of citizens), a mortgage loan could be issued for 25 years. In the period from January to June 2022, thanks to the State Housing Mortgage Lending Program (GIZHK), about 1.8 billion soms were allocated by the state to finance the preferential purchase of housing by obtaining a mortgage loan. With the help of the GIZHK Program, 845 families purchased housing in the shortest possible time, which is 113 families more than in the same period of 2021.