The total amount of mortgage loans provided to commercial banks and financial institutions by the State Mortgage Company (SMC) at the end of 2024 reached 10.82 billion KGS. However, it is important to note that this figure includes all loans extended over the entire period of the GMC's operation, since its establishment in 2016.

If we compare the amounts for one year, only 345.7 million KGS was allocated for refinancing mortgage loans in 2024. This is the difference between the total amount at the end of 2023 (10.48 billion KGS) and at the end of 2024 (10.82 billion KGS).

For comparison, in 2023 the GIC provided 554.95 million KGS to commercial banks, in 2022 - 3.9 billion KGS, and in 2021 - 1.2 billion KGS. Thus, the largest amount of funds for mortgage refinancing was allocated in 2022.

Temirkul Baltabaev, head of the State Mortgage Company, told Akchabar that this was due to a change in the company's strategic approach: instead of providing soft loans for the purchase of ready-made housing, GIC now focuses on the independent construction of residential projects.

“The change in market conditions due to the rising cost of housing has led to a reduction in the coverage of our program. While until 2022, 1 billion KGS allowed us to provide housing for about 700 families, since 2022 this figure has decreased, and now the same amount covers the needs of only 300 families. To restore coverage, we made a strategic decision to build housing independently,” Baltabaev commented.

From 2023, first in a pilot format and then on an expanded scale, the state housing construction program was launched. According to the head of the GEC, this not only solves the problem of providing citizens with housing, but also helps to increase the housing stock.

“Previously, by providing exclusively mortgage loans, we only fueled the market, but the growth rate of housing construction remained low. Today, the funds allocated for refinancing mortgage loans in commercial banks and financial institutions will be redirected to financing construction as they are repaid. At the same time, other existing mechanisms for purchasing ready housing in the primary and secondary markets will continue to be implemented, but already at the expense of donor funds within the framework of existing agreements. We are talking about programs that provide for the purchase of ready-made housing,” says Temirkul Baltabaev.

According to him, gradually these initiatives will be directed to the regions where the state mortgage construction is not yet implemented.