Prime Minister of Kyrgyzstan, Muhammadkal Abylgaziev, has come up with a proposal to reduce the interest rate on state mortgage crediting from 8% to 6%, RIA Novosti news agency reported on Wednesday.
According to Abylgaziev, it is difficult for most state employees to pay a mortgage at an 8-percent rate. Credits of the State Mortgage Company, established to meet social needs of civil servants, are issued for a period of fifteen years. Initially, the interest rate was 10% per annum, but in 2017, it was reduced down to 8%.
“The program entitled Affordable Housing of 2015-2020 should match its name. The current conditions are overwhelming for most social workers and civil servants. Improving the conditions for mortgage lending is one of the main tasks facing the government”, the Kyrgyz Prime Minister explained.