The objective of the Project is to support the Government of Uzbekistan (GOU) operationalise the Uzbekistan Mortgage Refinancing Company (UMRC). The establishment of UMRC is the cornerstone of the sector-wide development programme implemented by the GOU and is supported by a USD 200 million loan from the Asian Development Bank (ADB). It aims to establish a new institutional framework and financing mechanism to promote market-based mortgage finance.
Experts from Frankfurt School have been advising the GOU since May 2019. The technical assistance (TA) included the development of the general regulative framework for sound mortgage lending in Uzbekistan.
The primary objective of UMRC, the first institution of its kind in the country, is to provide long-term funding to mortgage lenders and thereby increase the availability and affordability of mortgage loans to low and middle-income Uzbek populations.
The loan amount ceiling will be SUM 323 million (ca. USD 32,000) for mortgage loans and SUM 80 million (ca. USD 8,000) for home renovation loans. The company would as a second-tier institution that refinances the mortgage portfolios of banks and attracts funds from various sources, including the capital market.
Apart from support to finalise UMRC´s operational roadmap and business plan, and develop documents, strategies, systems, and policies, Frankfurt School experts will provide TA for the first funding operations of the newly established mortgage refinance company.