Uzbekistan, Tashkent, March 13 / Trend D. Azizov /
In 2010 "Qishloq Qurilish Bank" (Bank of Agricultural Construction) of Uzbekistan will allocate about 200 billion soums for the preferential crediting of individual housing construction in rural areas, the bank said.
Mortgage loans for the construction of individual residential houses in rural areas are granted to citizens older 18 living in rural areas. They are granted according to the approved standard designs. People getting loans must have a steady income not prohibited by law over the last year and means in the target cumulative savings deposits to the amount of not less than 25 percent of the amount of the requested credit. The sum of the initial deposit or its part can be transferred by a legal entity - the employer of the borrower.
Credit is granted for up to 15 years with a six-month grace period to the amount not exceeding 1,000-rate minimum wage and 75 percent of the cost of housing. Currently, the minimum wage in Uzbekistan is 37,680 soums.
Currently, refinancing rate of the Uzbek Central Bank is 14 percent.
While constructing a house, the borrower can get up to 20 percent of the loan amount and funds for savings deposits, accumulated in the form of initial payment.
While constructing by a contracting method with the condition of a turnkey, a contractor gets an advance payment worth 50 percent of the loan amount. Current funding worth 40 percent of the amount of credit is made after verification of the advance payment. Final payment worth 10 percent is held after completion and acceptance of housing.
In parallel with the allocation of credit to an individual builder by a decision of district administration, a plot of land is allotted for inheritable possession without an auction.
The specialized Design and Research Institute on integrated design developments in rural areas, as well as specialized subsidiary Engineering Company Qishloq Qurilish were established.
They were set up to coordinate the operations.
Engineering Company Qishloq Qurilish has branches in every region of the republic. It is organizing the construction on terms of turnkey, including the financing and technical supervision of the construction progress.
In 2009, Uzbekistan had determined 42 areas of complex housing on 22 standard designs.
According to the bank, the portfolio of orders for the construction of housing is now more than 1,000 totaling approximately 100 billion soums.
Qishloq Qurilish Bank was established by Uzbek President Islam Karimov's decree in March 2009 for lending and banking services to the population and legal entities to improve the living conditions of villagers, assist in the development of productive and social infrastructure in rural areas through a system of long-term concessional lending in the state program of development and improvement of the village.
In late January, the bank started to place additional issue of shares worth 100 billion soums to increase the authorized capital three times - up to 150 billion soums. In accordance with the president's decree, the Ministry of Finance with a share of 53.3 percent and the Fund for Reconstruction and Development of Uzbekistan - 23,7 percent will become major shareholders. The combined share of the state on behalf of such shareholders will hit 77 percent as of early 2011.
In 2009, the bank's assets, calculated according to national accounting standards have increased twice compared to 2008 - up to 357.1 billion soums, credit portfolio - by 42.2 percent to 201.3 billion soums, joint capital, taking into account formed authorized capital worth $ 50 billion soums. It increased more than twice - up 73.5 billion soums as of January 1, 2010.
According to the president's decree, an additional source of formation of Qishloq Qurilish Bank's resource base is the target line of credit of the Uzbek Ministry of Finance amounting to 170 billion soums, given for 15 years at a rate of 3 percent per annum and a grace period of five years, as well as targeted long-term concessional loans, investments and grants from international financial institutions and other foreign financial and credit institutions.
Before 2012 "Qishloq Qurilish Bank" is exempt from taxes on profits and property.
As of March 12 the official rate is 1543.38 soum per $ 1.