DUSHANBE, February 23, Asia-Plus – The Ministry of Justice (MoJ) will submit the new edition of a bill on mortgage crediting for consideration the Government before March.
The source at a MoJ said that the ministry today sent the reviewed bill for coordination to relevant ministries and organizations.
“First time, the bill was submitted for consideration to the government at the end of last year but it was remitted for further reviewing and making a number of changes and addenda,” the source said. “The mortgage loan should be affordable for the population in terms of both interest rates on it and period of repayment.”
According to the source, mortgage loans provided today by some financial institutions in the country are not long-term and carry annual interest rates from 20% to 25%, “which is unacceptable for the majority of the population.”
The source said that Tajikistan is not fully ready for development of the mortgage crediting market. “At present not more than 10%-12% of the country’s population are able to use mortgage crediting services, and this should be taken into consideration,” the source stressed.
Mortgage lending is the primary mechanism used in many countries to finance private ownership of residential property.
Survey by International Finance Corporation (IFC) of housing finance market in Tajikistan has shown that prices of one square meter of dwelling space in the country have risen several times over the last years and now fluctuate from $550 to $1,350.
