Foreign currency mortgages to be converted to tenge
Apr 9, 2018 11:21 am
Older mortgages to receive payment support
The National Bank of Kazakhstan updated the nation’s mortgage loan refinancing programme to convert foreign currency mortgage loans to tenge and help ease the debt burden on mortgage loans issued between 2004 2009.
Amendments and additions to the programme consist of two blocks. The first one is meant to implement the tasks voiced by the head of the state Jan. 10 in the state-of-the-nation address. He instructed to finally handle the issue of foreign currency mortgage loans provided to the population before Jan. 1, 2016. As a result, almost all mortgage loans will be converted to tenge,” said National Bank Chair Daniyar Akishev. Since Jan. 1 last year Kazakh legislation has prohibited the provision of mortgage loans in foreign currency to individuals not earning in this currency.
The updated programme, he noted, envisions the refinancing of mortgage loans provided before Jan. 1, 2016 based on an exchange rate as of Aug. 18, 2015, when the exchange rate for the tenge changed dramatically. “The changes will create optimal conditions to pay back the loans for more than 21,000 payers,” said Akishev.
The second block (of changes) is meant to support mortgage loan payers that obtained the loans from 2004 to 2009. To date, more than 23,000 payers received support within the programme. They managed to preserve their housing and ease the payment process. The number of refinanced loans is expected to reach nearly 40,000 until 2026.
Socially vulnerable segments of the population paying mortgages will also get help.
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