Since 2020, Tajikistan’s savings bank, Amonatbonk, has provided mortgage loans in a total amount of 15.3 million somonis (equivalent to US$1.4 million), Amonabonk top manager Sirojiddin Ikromi told reporters in Dushanbe on August 8.
According to him, the bank has begun this type of lending with its employees, who have extensive work experience.
“42 employees of our bank have received mortgage loans on preferential terms, at the annual interest rate of 8.0 percent,” Ikromi said.
Meanwhile, mortgage loans to ordinary customers are issued on different terms: at the annual interest rate of 20 percent on the mortgage loans provided in the national currency and at the annual interest rate of 10 percent on the mortgage loans provided in foreign currency for the period of 10 years.
The down payment equal to 30 percent of the housing cost is required.
“In all, Amonabonk has allocated 100 million somonis for mortgage lending,” Amonatbonk top manager stressed.
Recall, Tajikistan adopted the legislative document formulating the basis for pledging immovable property and mortgage lending in 2008. The law is reportedly aimed at improving mechanisms for agricultural lending and introducing a number of other improvements, including: eliminating gaps and contradictions in the existing legislation; improving legal mechanisms for levying execution on mortgaged properties when borrowers fail to fulfill their obligations on repayment of mortgage credit; introducing mortgage notes (zakladnaya) that will circulate in financial markets as mechanisms for obtaining investors’ finance for mortgage lending; introducing land pledging that will enable agricultural producers to obtain credit; and introducing pledging of unfinished houses, construction materials, and equipment
However, commercial banks didn't want to take risks, issuing such long-term loans n conditions of shortage of free funds.
In late 2019, amendments were made to the mortgage law and they entered into force in early 2020. If earlier the law provided for the solution of any dispute between a bank and a mortgage borrower exclusively in court, now in case of loan default, a bank can put the client's pledge up for auction without a trial. But this does not mean that the borrower does not have the right to go to court, if considers that the creditor infringes on his rights.
