Kazakh construction companies seek to regain confidence of banks
Baku, Azerbaijan, Nov. 2
By Nigar Guliyeva - Trend:
Kazakhstan's construction companies seek to regain the confidence of banks and restore the previous volume of loan financing. Thus, in September the volume of overdue debts on the long-term loans of the building industry sharply dropped.
The main point of stumbling was a significant proportion of non-performing loans in the amount of loans issued for the construction industry. This year it fluctuated around 14% of the portfolio.
Against this background, banks have reduced lending to construction companies, trying to minimize their risks - the amount of loans decreased to less than 1 trillion tenge, and long-term loans to a level of 800 billion tenge, according to finprom.kz.
For a long time, construction companies failed to improve the situation, but in September the amount of overdue debt on the long-term loans fell sharply, by 9.5% over the month, to 103.1 billion tenge.
The volume of long-term construction loans is growing for the second month in a row, in August the figure increased by 0.8% and in September also by 0.8%.
As a result, the share of non-performing loans in the long-term loan portfolio decreased from 14.1 percent to 12.7 percent over the month.
The share of sector in the formation of Kazakhstan's GDP now stands at 4.9 percent.
Growth in Kazakhstan's construction sector is expected to average 5.8% in 2017, up from an expected 4.5% in 2016, reflecting a rising oil price and an improving macro-economic outlook.
As part of the Nurli Jol program, it is planned to build about 1.5 million affordable housing in Kazakhstan.
Over the past 5 years, the commissioning of residential buildings in Kazakhstan shows positive trends, an increase of 84.2%.
For six months of 2017, the volume of transactions in the housing market of Kazakhstan amounted to 111,848 transactions, which is 58.8% of the level of 2016.