7-20-25 mortgage program to be launched in H2 2018 - Daniyar Akishev

ASTANA. KAZINFORM - "7-20-25" program has already been drafted and will be published on the official website of the National Bank of Kazakhstan in the near future, Governor of the National Bank of the Republic of Kazakhstan Daniyar Akishev told a briefing on the results of the plenary session of the Kazakh Senate, Kazinform correspondent reports.

According to Akishev, the program is expected to be launched in the second half of this year. The National Bank of Kazakhstan has already created the required infrastructure. The new mortgage program operator is Baspana Mortgage Organization JSC, the Bank's subsidiary.

"This company will issue bonds and, using attracted funds, will repurchase up to KZT 1 trillion loans from banks. Currently, the organization is closely cooperating with banks to discuss the practical implementation of technical issues of collaboration," said Daniyar Akishev.

According to him, providing unprecedented preferential terms, the program should in no event be perceived by potential borrowers as free aid from the Government. The new mortgage program will be based on financial solvency and strict observance of fair market principles both by borrowers and banks. The downpayment of 20 percent of the apartment's cost is one of the key terms of the program. For potential borrowers, it is important to understand that the downpayment to the bank ensure a smaller loan to be raised, and, therefore, a lower loan interest.