The European Bank for Reconstruction and Development (EBRD) is allocating a synthetic loan in national currency to the Uzbekistan Mortgage Refinancing Company (Uzbekistan Mortgage Refinancing Company) of up to $40 million.
Established in 2019 with the assistance of state and local banks, MRC is the only national institution for mortgage refinancing. It does not provide subsidized loans, but acts as a secondary mortgage aggregator and lender, providing long-term financing to all volumes of private and state partner commercial banks that are provided with affordable and covered mortgage loans for housing.
The loan will enable MRC to provide a continuous flow of medium-term financing in national currency and thereby support the development of a commercially stable and standardized housing mortgage market in Uzbekistan.
It also strengthens MRC's role as a key institution in promoting the long-term development of the mortgage market, improves access to affordable housing finance, and helps attract private sector participation in the mortgage market.
A large portion of the loan funds will be directed towards expanding the "green" renovation program and will help invest in energy-efficient and climate-resilient measures to improve housing conditions. We are talking about measures such as heating, replacing windows and doors, installing air conditioners and solar energy systems.
Proceeds from the EBRD loan will allow MRC to provide long-term financing in national currency to some private and state banks, which will help overcome the temporary financing gap before entering the mortgage bond market (MBS). The project also paves the way for the emergence of new capital market instruments, such as MBS, by supporting the consolidation of high-quality mortgage portfolios with uniform lending and reporting standards.
