The mortgage lending has not developed in Tajikistan because mostly short-term deposits are placed in the country’s banks, according to the National bank of Tajikistan (NBT).
An official source within the country’s financial regulator says local banks refrain from providing mortgage loans due to the lack of financial resources necessary for this.
“People mostly place money into banks in a form of short-term deposits. It limits the lending agencies’ possibilities to provide mortgage loans,” the source said.
According to him, long-term accessible financial resources are needed for development of mortgage lending in Tajikistan.
Recall, Sirojiddin Ikromi, the head of Open Joint-Stock Company (OJSC) Amonatbonk (Tajikistan’s savings bank), told reporters in Dushanbe on July 23 this year that amendments, which are expected to be made to the country’s law on mortgage, in particular, provide for transferring ownership of mortgaged property to a bank without trial. “If the amendments are approved, Amonatbonk will begin providing mortgage loans,” Ikromi said.
Meanwhile, of 17 banks currently operating in Tajikistan, only two – Spitamenbonk and The First MicroFinaceBank of Tajikistan – provide mortgage loans. Besides, Microloan Deposit-taking Organization (MDO) Humo provides mortgage loans.
The First MicroFinaceBank of Tajikistan provides mortgage loans in dollars at the annual interest rate of 14-18 percent and mortgage loans in the national currency, the somoni, at the annual interest rate of 26-33 percent.
Spitamenbonk provides mortgage loans only in dollars at the annual interest rate of 15 percent.
MDO Humo provides mortgage loans in dollars at the annual interest rate of 18 percent and mortgage loans in the national currency, the somoni, at the annual interest rate of 30 percent.
A mortgage loan or, simply, mortgage is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is “secured” on the borrower's property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms.
