PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of April 13, 2023 No. UP-51

About measures for program implementation of providing the population with housing by means of mortgage loans on the basis of the market principles for 2023

For the purpose of forming of modern and steady system of allocation of mortgage loans to physical persons, targeted state support of the families needing improvement of housing conditions, attraction of financial resources in the domestic and international capital markets and the subsequent direction them on refinancing of mortgage loans:

1. Make since May 1, 2023 changes to the operating procedure for providing the population with housing by means of mortgage loans on the basis of the market principles according to which:

banks in case of allocation of mortgage loans to persons which do not have the official income are allowed to use alternative methods of determination of their solvency, including to implement the scoring system considering the turnover of bank cards, lease payments, utility and other costs of borrowers which are not forbidden by acts of the legislation;

banks, proceeding from the amount of the initial contribution, term of grace period and other indicators paid by the borrower, are granted the right to establish tiered interest rates on the mortgage loans allocated without subsidies;

the procedure for issue of notifications on provision of subsidy on favorable terms to teachers and training officers of the professional educational organizations teaching special objects or performing management of educational practice in such directions as engineering, processing and construction takes root;

duration of effective period of the notification on provision of subsidy issued on mortgage loans on acquisition of housing or construction and reconstruction of individual housing constitutes 4 months;

statements for allocation of subsidies on mortgage loans within the approved parameters for 2023 are adopted during the period from May 1, 2023 to December 1, 2023;

The Ministry of Economics and finance is granted the right to unilaterally cancel mistakenly selected notifications on provision of subsidy and to stop payments by means of the software based on the information provided by the commissions Halkparvar.

At the same time:

the maximum size of the mortgage loan allocated on one borrower for 2023 remains in the amount of, determined for 2022;

to persons who received the notification on provision of subsidy before adoption of this Decree, subsidies are allocated on conditions and in the sizes operating in 2022.

2. For the purpose of providing the mortgage market with long-term resources and acceleration of construction of housing:

To fund of reconstruction and development to allocate to the republican budget of the Republic of Uzbekistan funds in equivalent of 100 million US dollars at the rate for two percent points below the main rate of the Central bank with return condition till May 1, 2028;

To the Ministry of Economics and finance (Sh. Kudbiyev) to place in April, 2023 in accordance with the established procedure on bank deposits of means in the amount of 3 trillion sum at the expense of means of the republican budget of the Republic of Uzbekistan.

Permit the Ministry of Economics and finance to increase amount of the means determined for allocation of mortgage loans proceeding from liquidity of the Government budget.

3. Determine that from the funds allocated from the republican budget of the Republic of Uzbekistan according to Item 2 of this Decree, 500 billion sum go for replenishment of current assets of construction contract organizations.

At the same time the Ministry of Economics and finance places in banks money at the rate on two percent points below the main rate of the Central bank, and banks allocate the credits to construction contract organizations for up to 18 months with the interest rate equal to the main rate of the Central bank.

4. Approve:

Target indicators of allocation of mortgage loans for acquisition of apartments, constructions and reconstruction of individual apartment houses for 2023, according to appendix No. 1;

Target indicators of allocation of subsidies on mortgage loans for 2023, according to appendix No. 2.

Permit Council of Ministers of the Republic of Karakalpakstan, to hikimiyata of areas and the city of Tashkent to increase quantity of the mortgage loans and subsidies established by this Decree for the respective regions at the expense of the exceeded part of the income of local budgets.

5. Determine that since May 1, 2023:

practice of step-by-step acceptance by banks as a deposit as credit providing complete part (floors) apartment apartment houses under construction takes root;

till January 1, 2025 the zero rate of customs duty when importing construction materials and raw materials which list is specified in appendix No. 3 is applied.

To the Ministry of Economics and finance (Sh. Kudbiyev) to continue practice of refinancing at the expense of the funds of the Government budget of mortgage loans allocated to shareholders physical persons at the expense of own resources of banks.

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