Kazakh Banks Temporarily Stopped Giving Mortgage Loans

Five Kazakhstan Banks, including «Tsentrcredit Bank», «Forte», «Sberbank», «VTB» and «Kazkommertsbank», stopped realizing mortgage loans in real estate business.

According to 31st Channel, Instability of the national currency in the field of real estate pulled the financial organizations to take extreme measures. Some experts assume that real estate leasing will become the product which is available only to the special category of people soon.

Information on the revision of mortgage conditions was given to reset up as soon as National bank raised the percent value of interest rate. At the present time, Kazakh Banks Face is giving money to financial organizations with 17% annually. Up to that number, negotiators put their interest rate.

Bankers admit that the local market has the deficiency of national currency’s liquidity. It’s extremely risky and unprofitable to give mortgage loans to a period of ten years in tenge.

«We don’t any other sources of liquidity. After these highest rates, everybody can imagine what the rate has to be for the consumer. Most of Kazakh banks expect that National Bank will reconsider discount rate. After well, we will receive more or less acceptable tool in order to continue our loaning business», Dmitry Zabello, the chairman of the board of JSC VTB Bank (Kazakhstan), said.

Nowadays, «Kazkommertsbank» is no longer giving mortgage loans. This financial swap is available only to largest corporate customers of the financial organization. Another part of the population can apply only for the acquisition of mortgage real estate which is on a balance of that particular bank.

Experts explain some reasons for «closing» a mortgage. One of them is an unpredictability of the real estate market. If the prices go down than it was before, borrowers may refuse to cover loans. Then banks cannot sell such asset at the old price.

Analysts mention that most of the financial market’s players won’t offer clients mortgage loans in the near future.

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