"Mortgage Refinancing Company of Uzbekistan" signs its first Master Refinancing Agreement with the largest mortgage lending bank in the country
“Mortgage refinancing company of Uzbekistan” JSC (UzMRC) signs its first Master Refinance Agreements (MRA) with IPOTEKA bank. This is an uncommitted mortgage facility that allows IPOTEKA bank to finance mortgage loans in primary and secondary housing market. UzMRC resources have several advantages over existing and previous funding for the bank:
- Affordability of loans – the mortgage is designed for middle- and lower-income households to buy housing thus increase the bank’s client base.
- Long tenor of loans – bank can on-lend for 20 years.
- Possibility to lend mortgage to buy a property in secondary housing market.
- Possibility to lend loans for house renovation.
- Mortgage loans are granted to residents of Uzbekistan.
Atabaev Shukhrat, the Chairman of the Management Board of IPOTEKA bank says “Today, IPOTEKA bank is a leader of Uzbekistan in mortgage lending. The bank has 55 thousand outstanding issued mortgage loans for total balance of 7.7 trillion Soums. Since the beginning of this year IPOTEKA bank has issued mortgage loans for 2.7 trillion Soums and provided housing for 14 thousand people. IPOTEKA bank and me personally are glad that we were one of the first to sign the Master Refinancing Agreement with UzMRC and that we will continue to work together in the future.”. UzMRC Chief Executive Officer, Murodjon Farmanov, stated that “The Company was established in compliance with President’s Decree # 5715 “On additional measures for development and widening of mortgage market”, with the major goal of promoting affordable housing. At initial stage UzMRC is lending funds to commercial banks attracted from ADB. The Company loans will enhance the President’s initiative in developing mortgage market and meet the growing demand for affordable housing by applying the latest finance solutions. We hope to expand partnership with IPOTEKA bank in the future by using financial securities that will bring our relationship to a new level”.
About Ipoteka bank IPOTEKA bank is the largest mortgage lending bank in the Uzbekistan with UZS 28.7 trillion in total assets as of October 1, 2020. The bank serves 2.5 million retail and 51 thousand corporate clients via 165 branches and banking service centers all over Uzbekistan. About UzMRC UzMRC is a non-bank financial institution established on 4th November 2019 by the Ministry of Finance with the purpose of promoting affordable mortgage and developing domestic mortgage market on commercial terms. The company shareholders are 12 banks, including 8 state-owned and 4 private banks. UzMRC resources are aimed at providing support to the banks and ensure the first-time mortgage borrowers have access to long-term affordable housing finance.
