Integrites has the honor to bring to your attention the following information, which we hope may be useful in your company activities.
The Government of the Republic of Kazakhstan and the National Bank of the Republic of Kazakhstan (hereinafter - the "NBK") decided on the allocation of funds to address the current problems of mortgage borrowers (hereinafter - the "Program").
According to the Program, the NBK will allocate 130 billion Tenge as well as provide for additional capitalization of "Fund of problem loans", JSC (hereinafter - "the Fund") for the sum of 130 billion tenge.
In turn, the Fund will make placement of deposits in banks for the period of 20 years. The interest rate on these deposits shall constitute 2.99% per annum.
According to the NBK, the mentioned funds will be used by banks for refinancing of mortgages / mortgage loans to individuals.
The Program’s objectives include:
- Mitigating the conditions of mortgage loans repayment for the maximum possible number of borrowers;
- Lowering the level of problematic loans;
- Reducing the level of dollarization of the economy.
As part of the realization of the program, the refinancing shall affect the housing mortgages / mortgage loans issued in the period of 2004 through 2009, and where the only housing of the borrower and of his/ her spouse acts as a lien.
At the same time, the refinancing will be conducted under the following conditions:
- Interest rate – not exceeding 3% per annum;
- Converting of loans in foreign currency into Tenge loans;
- Increasing the term of loan up to 20 years.
It is worth noting that the program provides for bettering of loan conditions by the banks in case of loan refinancing. The mentioned measures may extend up to cancellation of the remaining principal balance of the debt.
In addition, the Program identifies both – its priority subjects and the methods for facilitating of the borrower's debt load.
In respect of the loans with an effective judicial act on the date of the refinancing, the refinancing amount is determined taking into account the principal amount of the debt:
- In Tenge – according to the amount set in judicial act;
- In foreign currency - the equivalent in Tenge in accordance with the official rate of the National Bank on the date of issuance of the judicial act.
In conclusion, please be informed that when refinancing a loan, banks may not charge any commission fees and / or other charges.
We hope that the above information will be useful for you.
For additional information, please contact our firm.
We will be happy to assist.