51348-002: Mortgage Market Development Program | Asian Development Bank

Uzbekistan: Mortgage Market Development Program

Sovereign (Public) Project | 51348-002 Status: Active

The small-scale technical assistance (SS-KSTA) will provide important knowledge input and background information for the conceptualization of a mortgage market development program and input for a project concept paper. ADB will aim to assist in the development of the market-based mortgage finance sector, improve access to mortgage finance and expand product availability to the commercial banking sector, improve access to mortgage finance and expand product availability to the commercial banking sector. This is expected to develop private sector, deepen financial intermediation and benefit all population groups including low- and middle-income householders.

Project Details

Project Officer
Marro, Peter Central and West Asia Department Request for information
Country
  • Uzbekistan
Sector
  • Finance
 
Project Name Mortgage Market Development Program
Project Number 51348-002
Country Uzbekistan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9479-UZB: Mortgage Market Development Program
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Finance / Housing finance

Gender Equity and Mainstreaming No gender elements
Description

The small-scale technical assistance (SS-KSTA) will provide important knowledge input and background information for the conceptualization of a mortgage market development program and input for a project concept paper. ADB will aim to assist in the development of the market-based mortgage finance sector, improve access to mortgage finance and expand product availability to the commercial banking sector, improve access to mortgage finance and expand product availability to the commercial banking sector. This is expected to develop private sector, deepen financial intermediation and benefit all population groups including low- and middle-income householders. The TA will also look for ways to leverage collective savings to reduce interest rates by exploring ways to (i) introduce new instruments such as contractual saving schemes, rental or co-operative schemes, (ii) mobilize long-term investments from institutional investors through covered bonds or mortgage-backed securities and (iii) identify alternative ways to provide subsidies to low-income families and improve access to long-term finance for underserved borrowers.

The SS-KSTA will formulate recommendations for required reforms to strengthen the enabling environment in the real estate markets of Uzbekistan and thereby address the various gaps in the legal and regulatory environment that hamper the development of the mortgage lending in the country, including the conceptualization of a Mortgage Consumer Protection Law for the first time in the country. Furthermore, the SS-KSTA will advise on (i) the operationalization of an Uzbekistan Mortgage Refinancing Company (UMRC), and (ii) establishment of a housing assistance unit (HAU) under the auspices of the Ministry of Finance and (iii) formulation of recommendation to form a coherent government housing strategy and improvements to the existing subsidy programs of the Government.

Project Rationale and Linkage to Country/Regional Strategy Uzbekistan is facing a growing unmet demand for housing, both in rural and urban areas. While the government is addressing some of the key challenges on the supply side of the housing market, especially in the rural areas, with the assistance of international donors, notably the ADB, its fiscal resources are not sufficient and need to be supplemented through the mobilization of market-based mortgage finance products provided by commercial banks (public as well as private institutions).There is therefore a need for commercial banks to play a larger role in the mortgage finance sector to address market demand. However, the banking sector in the country is characterized by low mortgage finance intermediation due to limited internal capacity and lack of access to long-term funding. Although the Government recognizes the importance of the housing sector for the economic and social development, Uzbekistan does not have a comprehensive unified housing policy framework. The present housing policy structure is dominated by various worthwhile, but isolated government programs state affordable rural housing program, young families and youth programs, other housing programs for active duty government personnel which are not always consistently designed and not cost effective in their targeting which may lead to inefficient use of scarce fiscal resources.
Impact Living standards for majority of population are improved.
Project Outcome
Description of Outcome Mortgage Finance Sector strengthened
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

A review of the policy, regulatory, and legal framework for the mortgage finance sector is carried out

A draft comprehensive housing sector strategy is prepared

Business plan for the establishment of UMRC developed

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services ADB will recruit a consulting firm or individual staff consultants to provide 5.5 person-months of international and 4 person-months of national consulting services. Consultants will be recruited, using the consultants' qualification selection (CQS).
Procurement All TA financed Goods and training and workshops shall be procured in accordance with ADB Procurement Policy (2017, as amended from time to time) and the associated PAIs/TA Staff Instructions.
Responsible ADB Officer Marro, Peter
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 23 Nov 2017
Fact Finding 27 Nov 2017 to 05 Dec 2017
MRM -
Approval 19 Dec 2017
Last Review Mission -
Last PDS Update 19 Jan 2018

TA 9479-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2017 - 19 Dec 2017 31 Dec 2018 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 0.00 0.00 0.00 0.00 225,000.00 19 Dec 2017 0.00

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Related Publications

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