The implementation of the first of the five social initiatives put forward yesterday by the Head of State during a joint meeting of the chambers of the Parliament of the Republic of Kazakhstan will give a tangible impetus to the development of the mortgage market in the country, the construction sector, and the increase in the share of local content in housing construction. This was announced today at a briefing in the Government press center by Minister of Investments and Development Zhenis Kassymbek.

According to the Minister, the First Initiative of the Head of State “New Opportunities for Every Family to Afford Housing” will become another effective tool for purchasing affordable housing for the population.

For this purpose, the National Bank will develop a new mortgage program "7-20-25" and create a special organization. The main terms of the program, according to the instructions of the President of the country, will be: the interest rate on loans would not exceed 7% per year, the initial contribution would not exceed 20%, and the loan term will be up to 25 years.

“This will give a tremendous impetus to providing citizens with affordable housing. In addition, a new impetus will be given to the entire construction sector. Thanks to the Nurly Zher State Program, local content in housing construction is 84%. The new initiatives of the Head of State will allow increasing this indicator even more, giving a big impetus to the whole industry,” – Zhenis Kassymbek said, answering journalists' questions.

As for concerns about the hype surrounding the new mortgage lending program, according to the Minister, it will not be present.

“Prime Minister Bakytzhan Sagintayev at today’s Government meeting instructed to in a week develop a roadmap jointly with other concerned bodies and the National Bank. We will develop concrete mechanisms for the implementation of these instructions and in a week we will be ready to talk about them specifically,” – Zhenis Kassymbek summarized.

Published: 06 March 2018



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