In 2024, Amonatbonk, Tajikistan’s state savings bank, issued mortgage loans totaling 42 million somonis (US$3.8 million), Amonatbonk Chairman Alijon Salimzoda told reporters in Dushanbe on February 7.
According to him, 144 people received targeted loans for purchasing real estate.
Salimzoda noted that Amonatbonk began offering mortgages in 2022. Since then, the bank has issued mortgage loans totaling 56 million somonis (US$5.1 million).
Thus, Amonatbonk’s mortgage lending volume in 2024 tripled compared to the previous two years.
The mortgage interest rate in national currency is 18% annually for a 10-year loan, and 14% annually for a 7-year loan.
A 30% down payment from the client is a mandatory condition.
In 2023, Amonatbonk’s management announced that it had started offering preferential mortgage loans (8% per year in national currency) to long-serving employees. As part of this program, 42 employees received mortgages.
Overall, Amonatbonk has allocated 100 million somonis from its own capital for mortgage lending.
Mortgage law amendments in Tajikistan
Tajikistan’s Mortgage Law was initially adopted in 2008, but banks were reluctant to issue long-term mortgage loans due to a lack of free capital and potential legal disputes, which could require significant time, effort, and resources.
At the end of 2019, amendments were made to the Mortgage Law, coming into force in 2020. These changes included the option for out-of-court sales of mortgaged property in case of non-payment or late payment of the loan.
Under the new regulations:
- Only agreements made before 2020 are subject to judicial review.
- The lender (bank) now has the right to sell collateral property without going to court.
- However, the borrower can still challenge the foreclosure in court or invalidate a notary’s enforcement signature.
In short, while mortgage disputes were previously settled exclusively in court, banks can now sell mortgaged properties without legal proceedings. Nevertheless, borrowers can still appeal to the court if they believe their rights have been violated.
Amonatbonk is the only state-owned bank in Tajikistan. Established in 1925, it is one of the oldest banks in the country and one of the largest based upon various criteria – including the number of branches and the number of served clients.
The institution is unique in its orientation towards implementing social, pension and other state programs. Amonatbonk has 5 regional centers, 69 branches and more than 500 agencies. This gives the institution a presence in the most remote mountainous parts of the country.
