Tashkent, Uzbekistan (UzDaily.com) -- Presidential Decree “On Additional Measures to Improve Mortgage Lending Mechanisms” was adopted.

According to the Decree, a new procedure is being introduced for providing housing to the population at the expense of mortgage loans based on market principles.

According to this:

- The Ministry of Finance places money in commercial banks on market conditions for a period of 15 years;

- Commercial banks provide the population with mortgage loans at the expense of their own funds and funds allocated by the Ministry of Finance;

- Mortgage loans allocated from the Ministry of Finance are provided at the market rate. In this case, the maximum loan amount per one borrower is established and he is given the right to independently choose the location and area of housing;

- Individuals (low-income people in need of better housing) are paid subsidies from the State budget to compensate for part of the down payment and (or) interest on mortgages.

The new order is being introduced:

- in rural areas - in areas adjacent to cities and administrative centers of the districts of Andijan, Bukhara, Namangan, Samarkand, Surkhandarya and Ferghana regions;

- in the city of Tashkent, as well as in the cities of the Republic of Karakalpakstan and regions.

According to the decree, in rural areas:

- the construction of multi-apartment buildings is carried out with their arrangement in the form of macro-arrays comprising at least 200 apartments;

- entrepreneurs involved in the construction of these apartment buildings are determined by the results of competitive bidding;

- land for the construction of houses is provided to business entities - winners of competitive tenders without an electronic auction at no cost.

And in cities, land for the construction of multi-apartment buildings is provided to businesses on a paid basis through an electronic auction through a single electronic trading platform "E-IJRO AUKSION".

A mortgage loan from funds allocated by the Ministry of Finance is issued for a period of 15 years for the purchase of apartments sold in the primary housing market.

In this case, a loan is issued:

- in rural areas - in an amount not exceeding 90 percent of the estimated cost of housing and with an initial contribution of at least 10 percent of the cost of the purchased apartment;

- in cities - in an amount not exceeding 80 percent of the estimated cost of housing and with an initial payment of at least 20 percent of the value of the purchased apartment.

Under the new procedure in rural areas, subsidies are paid to compensate for interest on a mortgage loan for the first 5 years - in part, in excess of 10 percentage points.

And in the cities paid:

- to compensate for the costs associated with paying part of the down payment in the amount of 10 percent of the estimated cost of housing;

- interest on the loan during the first 5 years - in the part exceeding 12 percentage points in the city of Tashkent, as well as 10 percentage points in the cities of the Republic of Karakalpakstan and regions.