Alliance Bank OJSC (Kazakhstan) informed about decreasing of interest rate on mortgage credits since June 1 of this year to 14.5% APR

/IRBIS, May 29, 03/ - Today Alliance Bank OJSC (Almaty), whose bonds are traded in Kazakhstan stock exchange's (KASE) highest listing category, spread press-release, which says that since June 1 of 2003 the bank decreases interest rate on mortgage credits to 14.5% APR. According to the bank's information this size of the rate is the lowest among Kazakhstan banks and let significantly expand range of Kazakhstan citizens, who wish to buy house on credit. Alliance Bank OJSC is not a primary creditor and gives mortgage credits on joint with Kazakhstan Mortgage Company CJSC program "Alliance Mortgage". Collaboration of Alliance Bank OJSC and Kazakhstan Mortgage Company CJSC started since August of last year. Mortgage credits were given Almaty and Astana cities. At present the stake of mortgage crediting takes about 40% of total loan portfolio of Alliance Bank OJSC concerning physical persons. It's planned that by September the stake of mortgage credits will equal to 60%. In Almaty region since the beginning of this year the bank has given mortgage loans for KZT250 m. Number of given mortgage loans redoubles. Spreading of mortgage loans program in the country's regions, where branches of Alliance Bank OJSC are, will let increase the bank's loan portfolio on the program of mortgage crediting up to KZT1 bn. by September of 2003. The message also says that partnership of Kazakhstan Mortgage Company CJSC and Alliance Bank OJSC, which has strong positions in the north and north-east of Kazakhstan, will significantly expand the market of mortgage housing crediting as well as make mortgage credits available for many Kazakhstan citizens, who live mainly in Kazakhstan regions. At present two-level system of mortgage housing crediting acts in Kazakhstan. The first level has been presented by primary creditors in the persons of banks and non-banking organizations, which give mortgage credits (for example, KAZKOMMERTSBANK OJSC). The second level has been presented by refinancing organizations, which purchase demand rights charging liens on mortgage credits given by primary creditors. Kazakhstan Mortgage Company CJSC acts as refinancing link, and Alliance Bank OJSC, AMB OJSC, ТЕХАКАBАNК OJSC, Astana-finance OJSC, BTA-Mortgage OJSC, Bank CenterCredit OJSC and Nurbank OJSC are among its partners. [2003-05-29]