EBRD Provides US$40 Million Loan to UMRC to Develop Mortgage Market in Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) — The European Bank for Reconstruction and Development (EBRD) will provide the Uzbekistan Mortgage Refinancing Company (UMRC) with a synthetic local-currency loan of up to US$40 million (approximately €34.5 million). UMRC is the country’s sole national mortgage refinancing institution.

The loan will enable UMRC to ensure a stable flow of medium-term local-currency financing, creating conditions for the development of a commercially viable and standardized residential mortgage market. It will also strengthen UMRC’s position as a key institution driving the long-term development of the mortgage sector, increase access to housing finance, and encourage private-sector participation in mortgage operations.

A significant portion of the funds will be directed toward expanding the “green” renovation program, including measures to improve energy efficiency and climate resilience of housing, such as insulation, replacement of windows and doors, and the installation of air conditioning and solar power systems.

Established in 2019 with government and local bank support, UMRC operates under the supervision of the Central Bank of Uzbekistan. It does not provide subsidized loans but functions as a secondary mortgage aggregator and lender, offering long-term financing to commercial partner banks of all ownership types, secured by mortgage loans suitable for repayment.

Funds from the EBRD loan will allow UMRC to provide long-term local-currency financing to both private and state-owned banks, helping to address temporary funding gaps before the development of the mortgage-backed securities market. The project will also lay the groundwork for new capital market instruments, including mortgage-backed securities, through the standardization and aggregation of high-quality mortgage portfolios.

To date, the EBRD has invested nearly €5.6 billion in Uzbekistan across 193 projects, most of which support private entrepreneurship and the country’s economic development.