Kazakhstan Mortgage Company to agree with commercial banks on purchasing of housing credits, provided to citizens within state program frames

/INTERFAX-KAZAKHSTAN, Almaty, June 21, 08/ - Kazakhstan Mortgage Company (KMC) is ready to purchase credits of commercial banks of the republic, provided to people within the frames of state housing program, having effect in 2005-2007. At the current moment KMC and commercial banks are preparing corresponding documents, which may be signed by all concerned parties on the next week and it will be announced officially, the advised source informed Interfax-Kaxakhstan. "Along with this, banks, providing mortgage loans at 10% APR, 2.2% will remain to itself and 7.8% will direct to KMC JSC as an income" - said the source , rejecting to open other details of financial scheme, which is, according to his words, called for "stabilization of situation on housing market, which is threatening to collapse". He explained, the thing is that for some time past, citizens of republic - participants of first housing state program - under the influences of recessio- nary events in financial sphere, decreasing of prices on secondary housing market, reject to pay possessed loans and return banks acquired flat, advanced on pawn. Banks, in their turn, are forced to realize these flats on the secondary market "and mostly, it is done hastily, at prices lower than that of the market, as realization of flats is not in the bank's competence" the source said. Within the frames of indicated first housing state program, second tier banks provided loans under the condition of payment the sum not less than10% from flat's value on 20 years term at 10% APR. Lump-sum costs on client's property and life insurance, payment of mortgage flat and payment of bank qualification are different in different banks. Within the frames of first housing state program, there 18 m. square meters dwelling instead of 12 m. square meters planned was built. At the same time, since year beginning, the republic started the second state program of housing construction, planned for 2008 - 2010. During this period there are 27 m. square meters dwelling are planned to construct. Besides, so called commercial elite dwelling is actively erected in republic. Population of republic exceeds 15.6 m. people. KMC JSC was founded in December 2000 within the frames of state housing program realization. The main direction of its activity is acquiring of demand rights on long term mortgage housing loans, provided by banks and attracting long term resources for mortgage crediting, including by means of its own mortgage securities issue. The sole shareholder of the company is government of Kazakhstan republic in the person of ministry of Finance. [2008-06-23]