Government and second level banks sign memo on co-operation

/Kazakhstan today, May 25, 04/ - The Ministry of Finance of RK, "Kazakhstani Mortgage Company" CJSC and second level banks - "Alliance Bank", "Astana Finance", "BTA Mortgage", "Nurbank", "Temirbank", "Texakabank", "Tsesnabank", "Kazkommertsbank", "BankCentreCredit", "People's Bank", "ATF Bank" - have inked a memorandum on co-operation in state housing construction programme implementation today, May 25, in Astana, - KZ-today correspondent reports. "It is a matter of forming a new segment in the mortgage economy. The government adheres to one single idea - to broaden the access of wide masses to cheap housing," - Arman Dunayev, finance minister of RK, stated at the inking ceremony. The memorandum includes seven items. As per item 1, the sides are going to apply all efforts to reach the following parameters of mortgage crediting of purchases of the housing, built a s a part of the state programme: the interest rate - 9-10% annually, the initial contribution - 10% annually, the term of mortgage loans - 20 years. The sides are also going to achieve reduction of bank margin to 2-2.2% as per a special programme of "Kazakhstani Mortgage Company" CJSC. "The agreement of banks to reduce the rate is a big step on their part towards the new housing policy," - A. Dunayev stated. The memorandum is open for other financial institutions and organisations to join it. [2004-05-25]