The Uzbekistan Ministry of Finance announced, together with the Central Bank, a pilot framework for a targeted mortgage savings scheme that will take effect on July 1. The mechanism allows citizens who have received a positive notification for a mortgage subsidy to voluntarily build a dedicated savings deposit at a commercial bank to fund a mortgage down payment. The deposit must cover at least the citizen’s own required share of the down payment, calculated from the maximum mortgage loan amount eligible for refinancing under the mortgage program, and the savings period cannot exceed 12 months. For citizens who form the mortgage savings deposit, the state budget subsidy intended to cover part of the down payment will be transferred in advance, based on applications from commercial banks, to help form part of the minimum required deposit amount. Commercial banks will pay market-rate interest on the deposit balance, and all funds accumulated during the savings period, including interest, must be used for the mortgage down payment. The existing subsidy mechanism for mortgage interest costs will remain in place, with the state continuing to cover, during the first five years of the loan, the portion of interest payments above the Central Bank base rate. The pilot is scheduled to run from July 1 to Dec. 31, 2026.

Original source Back to tracker