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Information message on the implementation of the Mortgage Housing Loan / Mortgage Loan Refinancing Program

20 August 2015

In accordance with the instruction of the Head of State, the National Bank decided to allocate KZT 130 billion to solve the problems of mortgage borrowers. On April 24, 2015, the Mortgage Housing Loan / Mortgage Loan Refinancing Program (hereinafter referred to as the Program) was approved by a resolution of the Board of the National Bank.

Not only interested state bodies, but also representatives of political parties and public associations took part in the development of the Program.

  Additional capitalization of “Fund of Problem Loans” JSC was carried out with further placement of money on deposits in 9 second-tier banks with a remuneration rate of 2.99% per annum for a period of 20 years in order to bring the allocated funds to second-tier banks.

The list of second-tier banks participating in the Program included Kazkommertsbank JSC (BTA Bank JSC and BTA Ipoteka JSC), Halyk Bank of Kazakhstan JSC, Fortebank JSC, Bank Center Credit JSC, ATF JSC Bank, Kaspi Bank JSC, Tsesnabank JSC, Eurasian BankJSC and Nurbank JSC.

The program is aimed at mitigating the terms of repayment of mortgage loans to the maximum possible number of borrowers, while at the same time support will be provided to socially vulnerable groups of the population.

As part of the Program implementation, the National Bank carries out the following work:

1) amendments and additions to the resolution of the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and financial organizations dated February 23, 2007. No. 49 “On Approval of the Rules for Lending Documentation” were included in the parts of determining the list of documents contained in the credit file for mortgage loans refinanced under the Program by the resolution of the Board of the National Bank of April 24, 2015. No. 70. The Resolution was officially published on June 24, 2015. (effective from July 5, 2015);

2) recommendations for questions of banks on the implementation of the Program are sent to banks by letter of the National Bank dated 06.11.2015. No. 30-1-06 / 2246. Currently, the National Bank is preparing a block of responses to additional questions from banks;

3) at the initiative of the National Bank in accordance with the instructions of the Prime Minister of the Republic of Kazakhstan in the regional akimats and akimats of the city of Astana and Almaty commissions for reviewing complaints of borrowers regarding refusals of loans received (hereinafter referred to as the Commission) are opened with the inclusion of representatives of law enforcement agencies and public organizations in their composition.

The National Bank has developed a model regulation on the Commission, which has been sent to akimats for use in the work.

The commissions are created in akimats of Astana, Akmola, Aktobe, Atyrau, East Kazakhstan, Zhambyl, West Kazakhstan, Karaganda, Kostanay, Kyzylorda, Mangystau, Pavlodar, North Kazakhstan and South Kazakhstan regions.

In the Almaty region, a commission was created in the Almaty regional branch of the National Bank and work is underway to create a commission in the Almaty city branch of the National Bank;

4) the issue of exempting banks from the payment of personal income tax (PIT) is worked out when writing off overdue debts to individual borrowers;

5) On July 23, 2015, under the AGF of the Nur Otan Party, a meeting of the working group was held with the participation of representatives of the Ministry of Justice of the Republic of Kazakhstan to discuss and develop a decision on determining the minimum amount of bailiff services under loan agreements under the Program. Given the social orientation of the Program, currently the Ministry of Justice is working in this direction; 

6) based on the results of the analysis of the proposals of public associations, banks, borrowers and local executive bodies, at the moment, the work on amending the Program is carried out in terms of the possibility of including in the Program:

- mortgage borrowers whose only dwelling is accepted on the balance sheet of the bank (mortgage organization) on a loan that has not been terminated, or part of the loan remains outstanding;

- changes on demand to the area of ​​mortgage property with 120 sq. m. total area of ​​the property is 120 sq.m. living space;

- refinancing of a loan if a third party acts as pledger for the loan;

7) The National Bank conducts active explanatory work such as daily meetings with representatives of public associations and borrowers; clarifications are provided to citizens at the National Bank Public Reception. Also, the work of the territorial branches of the National Bank in this direction is activated in the regions. In addition, the schedule of visits to second-tier banks has been drawn up, according to which the management and employees of the Department meet with borrowers directly in banks in order to assist the Handbook of enlarged estimated standards to work out the most appropriate conditions for them within the Program;

8) on a monthly basis, an analysis of reports submitted by banks on refinanced loans under the Program.

The work carried out by the National Bank makes it possible to promptly make decisions on emerging issues and complaints of borrowers, to reduce the dependency attitudes of borrowers and public associations that only require debt relief.

The implementation of the Program is under constant control and monitoring of the National Bank and the "Fund of Problem Loans" JSC. According to preliminary estimates, it will allow refinancing of more than 25,000 loans, of which more than 5,000 loans are borrowers belonging to the category of socially vulnerable citizens.

According to the banks as of August 15, 2015 5,434 applications were taken from mortgage borrowers, a positive decision on refinancing was made on 2,421 applications, loans were refinanced on 411 applications totaling 1,552,818,000 tenge.