Kazakhstan Mortgage Company JSC not willing to take bad commercial home credits of banks

/KASE, June 26, 08/ - Kazakhstan Mortgage Company JSC (Almaty), a listing company of Kazakhstan Stock Exchange (KASE), provided KASE with the press release: Quotation start Kazakhstan Mortgage Company JSC (KIK) disproves the messages released by Interfax-Kazakhstan on June 23-24, 2008 regarding negotiations with commercial banks on willingness to take not only bad credits of republican commercial banks, granted to population within the state accommodation program, but also bad commercial home credits of banks, and sign corresponding documents with interested parties. It is important to note that KIK main activities are acquisition of rights of demand on long-term mortgage loans, granted by partner-banks for purposes of acquisition/repairs/ construction of accommodation secured on purchasable or available real estate, complying with requirements of the legislation of the Republic of Kazakhstan, and attraction of long-term credit resources for mortgage lending, including by issue of own mortgage securities. KIK has been established not to grant mortgage accommodation loans just as commercial banks, but for building, development and regulation of mortgage market. In accordance with Decree No. 1388 of the President of the Republic of Kazakhstan of June 11, 2004 "On State Program for Development of Accommodation Construction in the Republic of Kazakhstan for 2005-2007" (the First Accommodation State Program for 2005 - 2007), KIK has been determined to be an operator of this problem. Within the frameworks of the First Accommodation State Program for 2005-2007 commercial banks granted credits to population on conditions of initial depositing of at least 10 % of the apartment cost for the term up to 20 years and at 10 % APR. The rights of demand on loans granted by partner banks for acquisition of accommodation, operational before December 31, 2007 had been acquired by KIK. Currently, there are no bad credits within the first accommodation state program for 2005-2007. Therewith, KIK intends to refinance mortgage loans, granted within the first accommodation state program for 2005 - 2007 for acquisition of accommodation, construction of which has been funded in accordance with the legislation set by the local district authorities before December 31, 2007. In this connection, KIK is taking measures to sign Memorandums on Interaction with Akimats of Astana and Almaty within the frameworks of the State program for 2005-2007 (the Memorandum), the main purpose of signing of which is successful ending of the First Accommodation State Program for 2005 - 2007 by monitoring of volumes of introduced accommodation, volumes of funds and supervision for timely repayment of the budget funds granted by the Government, which is evidenced by KIK and 6 regions (Kostanai, South Kazakhstan, Karaganda, Akmola, Zhambyl, Almaty oblasts) signing the Memorandum. KIK plans to sign the Memorandum with other regions before the middle of this July. To prevent publications with distorted information, KIK informs about the officers authorized to provide information on Company activities and policy in accordance with the Code of Corporate Management: - D. Ergozhin - Vice Minister of Finance of the Republic of Kazakhstan - Chairman of the Board of Directors of KIK; - A. Ibadullaev - Chairman of the Management Board of KIK; - B. Beketaev - Deputy Chairman of the Management Board, supervising legal affairs; - K. Mamyrbaev - Deputy Chairman of the Management Board, supervising crediting and treasury affairs; - A. Shabanov - acting Deputy Chairman of the Management Board, supervising back-office. Contact phones: 8 /717/ 271-77-91 8 /727/ 272-62-62 Quotation end [2008-06-26]