The indigent families will be provided with mortgages for a period of 20 years

The indigent families will be provided with mortgages for a period of 20 years

The president of Uzbekistan Shavkat Mirziyoyev held a video-selective meeting on March 3rd on measures to develop housing and mortgage market, the press service of the administrative state said.

" From this year there will be no shortage and restrictions on financial resources for mortgage lending, if the regions provide additional proposals, they will be resolved positively," the head of state said.

It has been determined that the loans will be allocated for the construction and reconstruction of individual residential buildings. They will be provided for a period of 20 years.

The low-income families will be able to use subsidies to cover part of the interest. The Ministry of Finance has been instructed to allocate 1.5 trillion sums for this purpose, to the regional governors - to determine in the area the number of indigent families who will receive such support.

The state provides great benefits to both builders and home buyers. In particular, this year will be introduced a six-month grace period on mortgages. In cities, the down payment would be reduced from 20 percent to 15 percent.

Poor households in need of improved housing conditions will be paid a subsidy of 10 percent of the down payment, and buyers will only have to pay 5 percent of the down payment.

It was also announced that the benefits granted to construction companies during the pandemic would be extended until the end of this year. Furthermore, the Enterprise Support Fund will provide construction organizations with guarantees of up to 20 billion sums of money on home loans, as well as interest compensation in part exceeding the central bank's base rate.

Note: In 2019, The Asian Development Bank (ADB) has approved $200 million in loans that will help the Government of Uzbekistan reform its housing finance programs and provide families with more affordable mortgage products.

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