PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of April 30, 2024 No. UP-70

About additional measures for enhancement of mechanisms of allocation of mortgage loans and improvement of housing conditions of the population in 2024

For the purpose of the effective organization of housing reforms in the country, expansions of scale of construction of arrays of "Yangi Uzbekiston" and modern apartment houses, further market development of mortgage lending, and also widespread introduction in practice of mechanisms of refinancing of the credits allocated by banks at the expense of own means:

1. Approve offers of the Ministry of Economics and finance, the Ministries of Construction and Housing and Communal Services, the Central bank, the Ministry of employment and reducing poverty, and also Association makhally Uzbekistan, the providing the population with housing providing within the Program by means of mortgage loans on the basis of the market principles (further - the Program):

construction in regions according to appendix No. 1 of the multi-storey apartment houses with modern architectural appearance consisting of 100 thousand apartments;

for the purpose of further financial support of the construction organizations provision of compensations and guarantees by it on the credits issued on the basis of the market principles;

widespread introduction in processes of construction of multi-storey houses of "green" housing standards;

the direction on financing of mortgage loans at least 17 trillion sum at the expense of the republican budget of the Republic of Uzbekistan, JSC The Company on Refinancing of Mortgage of Uzbekistan (further - the Company) and own means of banks;

allocation to the faces included in the Program of removal from poverty, and needing improvement of housing conditions, mortgage loans at the rate to 120 million sum on construction, reconstruction and repair of individual housing;

broad application by the Ministry of Economics and finance of mechanisms of refinancing of the mortgage loans allocated at the expense of own means of banks.

2. Determine that since June 1, 2024 practice of allocation based on the recommendation of "the makhallinsky seven" and at the expense of means of the Ministry of Economics and finance of mortgage loans to the faces included in the Program of removal from poverty, and needing improvement of housing conditions takes root. At the same time:

mortgage loans are allocated at the rate to 120 million sum for a period of up to 20 years at the rate exceeding the main rate of the Central bank on four percent points, on the purpose of construction, reconstruction and repair of individual housing;

on mortgage loans subsidies for compensation of part of the initial contribution in the amount of 15 percent of the allocated credit, and for covering within the first five years of loan term of part of the interest payments exceeding 12 percent are paid.

3. To the ministry of employment and reducing poverty (B. Musayev) to create in the electronic platform "Online Waved" possibility of maintaining the list of the families included in the Program of removal from poverty, and needing improvement of housing conditions in a month.

To the chairman of the board of Ministers of the Republic of Karakalpakstan, to hokima of areas and the city of Tashkent together with "the makhallinsky seven" to provide employment of the citizens included in the Program of removal from poverty, and who obtained the credit for construction, reconstruction and repair of individual housing, the types of activity giving opportunity of receipt of regular income.

4. Determine that since May 1, 2024:

a) refinancing of the mortgage loans allocated at the expense of own means of banks is performed by the Ministry of Economics and finance monthly not later than the 25th following month under report at the main rate of the Central bank in the sizes specified in appendix No. 2.

At the same time, if the size of the mortgage loan necessary for acquisition by the borrower of the apartment exceeds the sizes specified in appendix No. 2, to banks it is allowed to finance missing part of the credit by allocation at the expense of own means of the mortgage loans based on the market principles;

b) mortgage loans are refinanced by the Ministry of Economics and finance provided that:

mortgage loans are allocated to physical persons for acquisition of apartments in the primary market of housing (including constructed on the basis of equity), and also on construction, reconstruction or repair of individual housing;

the borrower possesses the mortgage loans allocated within the Program for the first time. At the same time this rule extends to the credits allocated starting with the Program for 2024;

mortgage loans are allocated for the term of no more than 20 years and at the rate exceeding the main rate of the Central bank no more than on four percent points (except for the credits allocated to physical persons shareholders);

c) the mortgage loans allocated to physical persons shareholders are refinanced by the Ministry of Economics and finance irrespective of the size of interest rate.

To the Ministry of Economics and finance (I. Norkulov) to take measures for refinancing conforming to the established requirements of mortgage loans and uninterrupted providing banks with financial resources.

5. Approve the offer of the Ministry of Economics and finance on allocation of the Company at the expense of means of the Government budget of resources in the amount of 1,2 of one trillion sum for a period of 20 years at the rate exceeding the main rate of the Central bank on three percent points.

Determine that these resources go for refinancing of the mortgage loans conforming to the requirements established by the Company and the apartments provided to physical persons for acquisition in the primary market of housing for a period of up to 20 years at the rate exceeding the main rate of the Central bank no more than on eight percent points.

6. Make the following changes to the operating payment procedure of subsidies within the Program according to which:

reception of applications on allocation of subsidies within the approved parameters is performed during the period from May 15 to November 1, 2024;

subsidies for compensation of part of interest payments on the credits allocated within the Program for 2024 are paid in the part exceeding 12 percent, and on the credits allocated within Programs on the 2025th and the next years - in the part exceeding the main rate of the Central bank;

subsidies for compensation of part of the initial contribution on the mortgage loans allocated on acquisition of apartments in the primary market of housing starting with the Program for 2024 are paid in the fixed size - 30 million sum.

7. Approve:

Target indicators of refinancing of mortgage loans for 2024 according to appendix No. 3;

Target indicators of payment of subsidies for mortgage loans for 2024 according to appendix No. 4.

8. Form the Fund of mortgage support under the Ministry of Economics and finance (further - Fund) without the status of the legal entity opened in the form of the separate treasurer account.

Approve the main activities and sources of forming of fund according to appendix No. 5.

9. Establish procedure according to which since May 1, 2024:

a) in case of allocation of mortgage loans for acquisition of apartments in the primary market of housing the requirement of insurance of subject of mortgage upon insurance risks is cancelled;

b) the right to construction of multi-storey apartment houses is granted to also construction organizations having electronic rating assessment "With" and "CC" in the National information system "Transparent Construction".

At the same time the organizations having electronic rating assessment "With" are allowed to build housing number of storeys no more than five floors, having electronic rating assessment of "CC" – housing number of storeys no more than nine floors;

c) till January 1, 2025 when importing the new construction and special equipment which list is specified in appendix No. 6, the zero rate of customs duty is applied;

d) for replenishment of current assets of the construction organizations participating in construction of multi-storey apartment houses on arrays of "Yangi Uzbekiston" from the republican budget of the Republic of Uzbekistan funds in the amount of 500 billion sum are allocated. At the same time:

The Ministry of Economics and finance places the specified money in banks for a period of 18 months, including grace period of 12 months, at the main rate of the Central bank, and banks allocate the above-stated funds as the credits to the construction organizations using two-percent margin;

the list of the construction organizations on which replenishment of current assets the credits are allocated is constituted by the Ministry of Construction and Housing and Communal Services and the Central bank proceeding from the rating of the construction organizations;

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