Interest rate on credits, issued by Kazakhstan Mortgage Company JSC (Kazakhstan) is temporary decreased to 11.9% APR

/Kazakhstan Mortgage Company JSC, November 4, 05, heading of KASE/ - As it is known, many banks and banking organizations, which are partners of the Company, fulfill issuance of mortgage loans by it program. At that crediting rate consists of quoting rate, fixed by the company, and bank's margin (banking organization), i.e. addition covering bank's expenses on issuance and servicing of credit. The company, approving monthly quoting rate, proceeds from inflation for the last month in annual expression and spread, which includes investors' margin, acquiring the Company's mortgage bonds, and own margin, providing coverage of own expenses and earning of income by the Company. The Company, having analyzed own financial condition, came to conclusion, that stability and high indexes of its activity allow temporary to reduce crediting rate. As per the Company's decision, spread with quoting rate for the period November 2, 2005 - February 1, 2006 will equal to zero, i.e. quoting rate, at which the Company refinances issuance of mortgage housing loans by its partners, will correspond to inflation level for the last month in annual expression. As per submitted data of Statistics agency of RK inflation level for the period October 2005 to October 2004 was 7.9%. Maximum margin, fixed by creditors in issuance of housing credits by the Company's program, equals to 4%. With a number of banks-partners agreement about decrease of their own margin was concluded. Thus, in November maximum rate of interest on the Company's credits will be 11.9%. For comparison, in October of the current year credits were issued at the rate 13.2% APR. Decrease of amount of interest rate is important step on increase of availability of mortgage credits for wide population, especially in connection with positive social-economic indexes of the republic's development, growth of population's incomes. Kazakhstan Mortgage Company JSC assumes, that taken measures will allow to continue joint work with domestic financial institutes on further decrease of rates on issued mortgage housing loans. [2005-11-04]