Yangi Toshkent mortgage

Loan Purpose

Financing the purchase of an apartment in a newly constructed apartment building under a shared-equity construction agreement within the Yangi Toshkent project.

Maximum Loan Amount

Up to UZS 800 million:

• up to UZS 330 million from the funds of the Ministry of Economy and Finance for Tashkent Region;
• up to UZS 420 million from the funds of the Ministry of Economy and Finance for the city of Tashkent.

The remaining portion of the apartment price is financed from the Bank’s own funds.

Down Payment

At least 20% of the property value.

A payment made through an auction may be counted towards the down payment.

Interest Rate

Financed from the Bank’s own funds — 18% per annum (fixed rate).

Financed from the funds of the Ministry of Economy and Finance after the apartment has been mortgaged to the Bank:

• for all customers — the policy rate of the Central Bank of the Republic of Uzbekistan plus 3 percentage points;
• for payroll programme participants — the policy rate of the Central Bank of the Republic of Uzbekistan plus 2.5 percentage points.

The interest rate is variable. If the Central Bank’s policy rate decreases, the loan rate will decrease proportionally; if the policy rate increases, the loan rate will remain unchanged.

Changes to interest payments are calculated from the effective date of the reduction in the Central Bank’s policy rate.

Repayment Schedule

• annuity;
• declining-balance.

Loan Security

Once the residential building has been commissioned and ownership rights to the apartment purchased with the loan proceeds have been established, the apartment will be accepted as security for the loan. This requirement is stipulated in the relevant provision of the loan agreement. Until the apartment is mortgaged to the Bank, one or more of the following forms of security may be accepted:

• an insurance policy;
• a surety provided by an individual and/or legal entity;
• real estate;
• the right of claim (property right) under the shared-equity construction agreement concluded between the borrower and the state institution “Directorate for the Construction of New Tashkent City” under the Cabinet of Ministers.

If the right of claim (property right) is accepted as security, a pledge agreement covering this right must be concluded between the Bank and the customer before the loan is disbursed. The agreement must be registered with the cadastral authorities, and details of the pledge must be entered in the Collateral Registry in accordance with the established procedure.

If the right of claim (property right) is accepted as security, an additional surety must be provided by a legal entity — the developer or project owner of the apartment building — for an amount equal to at least 125% of the loan amount, or at least 130% for parties related to the Bank. The financial standing of the guarantor is not assessed.

A general surety is provided for all loans issued under the cooperation arrangement on the basis of a surety agreement.

Once the apartment has been mortgaged to the Bank, the insurance policy may be amended to cover the mortgaged property.

The insurance agreement must remain valid throughout the entire loan term.

Security Requirements

• the loan-to-value ratio must not exceed 80%;
• the value of the security must be at least 125% of the loan amount;
• for loans granted to parties related to the Bank, the value of the security must be at least 130% of the loan amount. The security shortfall may be covered by an insurance policy.

Corporate Surety

A surety is provided by the state institution “Directorate for the Construction of New Tashkent City” under the Cabinet of Ministers.