Daniyar Akishev: New company to run mortgage program to be set up

ASTANA. KAZINFORM - On Tuesday, Chairman of the National Bank of Kazakhstan Daniyar Akishev announced creation of a new state company which will operate the mortgage program "7-20-25", Kazinform reports.

"It is necessary to reinstate the mechanism of securitization of mortgage loans by maximum involvement of bank and fund market possibilities. In the near future the National Bank Board will consider creation of 100% affiliate company to operate the program. The capital of the new company will be set up from the National Bank funds. The company needs capital in order to bring funds from the financial market on market conditions for buyout of new mortgage loans provided by banks under 7-20-25 program," Daniyar Akishev told the session of the Government.

Daniyar Akishev noted that for effective implementation of the program it is necessary to recognize the company as financial agency. According to the National Bank Chairman, during implementation of the program, there will be used the means of the existing financial infrastructure for the work with population.  

He also said the accumulated negative experience will be considered, when under-evaluation of the loan risk of the borrowers alongside with fall of real estate prices made it necessary to protect mortgage loaners, especially those who appear among socially vulnerable groups.