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Eurasian Development Bank to support Kazakh state program for affordable housing

Finance Materials 25 June 2021 16:34 (UTC +04:00)
Eurasian Development Bank to support Kazakh state program for affordable housing

BAKU, Azerbaijan, June 25

By Nargiz Sadikhova - Trend:

The Eurasian Development Bank (EDB) and Kazakhstan Housing Company JSC (KZIK), a subsidiary of the Baiterek national management holding, signed loan agreements totaling 3.5 billion Russian rubles ($48.5 million) for the purpose of implementing the state program for providing the population with affordable housing in Kazakhstan, Trend reports citing the EDB.

Financing of this program will allow building more affordable housing for Kazakh population through preferential mortgage lending instruments.

“Participation in such projects is of particular priority for the EDB. The Bank is confident that the project implementation will have a beneficial effect on the development of social infrastructure, will provide new opportunities for the acquisition of housing for those segments of Kazakh population who are in special need of it. Moreover, the support provided to the industry will bring other socio-economic effects, such as stimulating the labor market through the creation of new jobs, improving the level and quality of life of the population, and forming the accompanying infrastructure," Amangeldy Issenov, Deputy Chairman of the EDB Management Board said.

In order to increase the volume of financing for housing construction in 2021, KZIK will implement a mechanism for mixing funds allocated from the Kazakh National Fund with funds raised on market conditions, with the further repurchase of bonds at a single rate.

Thus, at the expense of attracted market funds, the volume of redemption of bonds of local executive bodies will be increased by an average of 61.5 billion tenge ($143.3 million) annually, and the volume of commissioning of affordable housing will increase by 340,000 square meters a year, which equals about 5,600 new apartments.

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