In the Jogorku Kenesh, President Sadyr Japarov announced that the authorized capital of the State Mortgage Company (GIK) has reached 2 billion US dollars.
The head of state noted that until 2020, GIK effectively operated as an intermediary between borrowers and banks, where interest rates reached 14% per annum.
According to him, the analysis showed that with an average income of 16,000 soms, the monthly payment on a mortgage loan amounted to 24,000 soms.
“We decided to raise the income threshold to 70–80 thousand soms and completely revise the terms of mortgage lending, changing the system by 180 degrees. Now mortgages are issued at a rate of 4% per annum for a term of 25 years,” Japarov added.
The president also mentioned the criticism coming from deputies regarding the markup of GIK, despite the fact that land is provided free of charge, and the question of the possibility of providing housing at cost price.
“GIK must become a viable and sustainable company. If we provide housing without a markup, it will require constant funding from the budget. As a result, in 10–15 years, the company may go bankrupt and will not be able to continue building housing for citizens,” he emphasized.
According to government plans, by 2026 it is expected to provide housing for 10 to 20 thousand families. Currently, facilities whose construction began three years ago are actively being commissioned in Osh, Batken, Jalal-Abad, Chui region, and Bishkek, as well as in Talas and Naryn, with construction continuing in Issyk-Kul - in Karakol, Cholpon-Ata, and Balykchy.
