DUSHANBE May 25, Asia-Plus – To develop mortgage crediting Tajikistan ought to set up a system of loan offices along with other actions.
Santiago Ruiz Morales, the head of the Central Asia Primary Mortgage Market Development Project, remarked this at a ceremony dedicated to commencement of the project’s second phase in Dushanbe on May 24.
According to him, one of the main aspects of provision of mortgage loan is confidence of bank in client. System of loan offices allows banks having full information about promissory notes of client, his/her incomes, and legitimacy of rights of property, according to him.
Expensive insurance services, complex procedure of registration of rights of property, unsolved issues connected with eviction of client in the event of non-fulfillment of promissory notes, and lack of evaluation of client’s property (mortgage) also impede development of mortgage market in the country.
“The project has set to work on new directions. Thus, with active support of the National Bank of Tajikistan, a working group uniting five Tajikistan’s largest banks has been set up to work out and introduce into banking practice modern standards and technologies of mortgage crediting for implementation of a joint complex program projected within the framework of the project,” he said, adding that it will allow creating conditions for providing various sections of the population with available housing.
International Finance Corporation (IFC) is providing technical assistance to Tajikistan in projecting legislative and regulatory documents in the field of housing mortgage crediting.
The Central Asia Primary Mortgage Market Development Project is designed for the period till 2009.
This two-phased, regional program documents demand and identify gaps in current housing finance systems in Azerbaijan, Kazakhstan, Tajikistan, Kyrgyzstan, and Uzbekistan. This study is IFC’s first regional housing TA program in Central Asia. The data will be used to create action plans for improving the affordability and availability of housing funds for middle and lower income households and, where feasible, generate business viability plans for primary and secondary mortgage finance companies in each country.
The second stage of the project provides for technical assistance in the direct implementation of reforms, including working out of legislative and regulatory documents, introduction of state-of-the-art technologies of mortgage crediting into commercial banks as well as making population aware of the mortgage crediting.
The first phase of the project, which was implemented from 2005 to 2006, focused on determining legislative and other obstacles on the way of development of housing finance system and working out a plan of actions for development of mortgage market in each country of the region.
