KMC jointly with partners intends by 2008 to provide decrease of rate on mortgage credits to 10%

/INTERFAX-KAZAKHSTAN, Almaty, January 5, 06/ - State Kazakhstan mortgage company JSC (KMC) jointly with partners - banks and companies - intends to provide decrease of interest rate on mortgage credits in 2006 to the level 12% APR, in 2007 - 11%, in 2008 - 10%. Corresponding memorandum About collaboration with a view to provide access of mortgage crediting for population of the republic on Thursday in Almaty signed representatives of KMC, companies Kurylys ipoteka, BTA Ipoteka, Alliance bank, Danabank and Temirbank, correspondent of agency Interfax-Kazakhstan informed. As Marat Saduov, chairman of the board of KMC noted after signing ceremony, at present time intention to sign this document also approved Halyk bank, Tsesnabank and Valut-Tranzit bank. "We intend to conduct work on creation of terms, assisting to decrease of interest rate on mortgage credits to above parameters, in condition of keeping stable economic development of the republic and established prognosis of inflation level", - head of KMC stressed. He also noted, that, as per signed memorandum, parties intend to conduct joint work to provide access of mortgage credits for wide groups of population, particularly, creating terms, assisting not only to decrease of interest rate on mortgage credits, but also conducting measures, connected with simplification of procedures to grant mortgage housing credits and decrease of corresponding tariffs. Along with this M.Saduov reminded, that if from the beginning of development in the republic mortgage crediting in 1997 interest rates on this banking service were nearly 24% APR, by 2005 this index was decreased to 13% APR. But from the beginning of 2006, he stressed, with support of Finance ministry and National bank KMC offers new commercial product with fixed interest rate in size, not exceeding 11.9% APR, which is calculated from quotation rate of KMC at the level 9% APR and margin of banks in size 2.9% APR. M.Saduov also informed, that at present time clients of KMC are nearly 17 th. people, at that stake of companies in the market of mortgage credits is nearly 16%. As it was informed, in Kazakhstan volume of mortgage credits granted to population in 2005 was forecasted at the level $1 bn., this is almost three times exceeds last year index. [2006-01-05]