Baku, Azerbaijan, Aug. 19
By Elena Kosolapova - Trend:
On the results of May 2015, the total amount of mortgage granted by banks in Kazakhstan totaled 877.6 billion tenge (188.35 tenge = $1), analytical service Ranking.kz said.
Reduction for the month was 39.3 billion tenge, and 46.9 billion tenge for the year (from May 2014 to May 2015).
Over the year (from May 2014 to May 2015) the mortgage portfolio in foreign currency decreased by 90.2 billion tenge, and increased to 43.2 billion in the national currency, tenge.
The currency structure of the mortgage portfolio continues to change: the share of loans in tenge only for five months of 2015 grew by 1.5 percent - to 86.4 percent (historical maximum).
Further growth of mortgage loans in the national currency in Kazakhstan will be provided by the refinancing program, launched by the National Bank in April 2015. Under the program, borrowers will be able to convert foreign currency mortgage loans to tenge, increasing the loan term to 20 years.
The banks have allocated 126.4 billion tenge from a total of 130 billion tenge allocated for the refinancing program.
Six second-tier banks (11 products) of Kazakhstan offer mortgage loans in the national currency with a term of 20 years.
Two second-tier banks have the maximum period of up to 360 months (Halyk Bank and Bank CenterCredit).
Minimum initial installment on mortgage loans varies from 10 to 30 percent. Halyk Bank and VTB have the minimum initial installment of 10 percent.
The Eurasian Bank, BCC and Sberbank have the maximum initial installment of 30 percent.
Halyk Bank of Kazakhstan has the lowest effective rate - starting from 14.6 percent, while the Bank CenterCredit has the maximum effective rate - starting from 22 percent. The average rate on the market is 17.43 percent.
Edited by CN
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