Housing finance development in Uzbekistan

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While there is a strong demand for mortgages due to population growth, poor housing conditions and rising household incomes, further mortgage market growth has been constrained as banks could not keep up with the rising demand due to limited access to long-term funding and weak operational procedures. This creates the necessity to introduce the tools in the local market that will allow access to long-term funding and to build capacity of the market players to utilize these tools in their operations. The project will address the issue through implementation of activities under two components: (1) supporting the development of the legislation and regulation to support capital markets deals, including mortgage securitization and covered bonds, (2) providing advisory services to IFC client-bank(s) to enhance their mortgage lending practices, develop new mortgage products to address growing demand from the households and prepare banks for refinancing of their mortgage portfolios through new capital markets instruments.