Tajikistan’s President Signs New Law on Mortgages, Developed in Collaboration with IFC
In Moscow:
Ilya Sverdlov
E-mail: Isverdlov@ifc.org
Phone: +7495-411-7555
In Dushanbe:
Daler Normatov
E-mail: Dnormatov@ifc.org
Phone: +992487011455
In Tashkent:
Anvar Meliboev
E-mail:Ameliboev@ifc.org
Phone: +998-71-138-5928
Dushanbe, April 18, 2008—IFC, a
member of the World Bank Group, has drafted and lobbied for the adoption
of the country’s mortgage law. Signed by the President of Tajikistan earlier
this month, the law will enable regulation of mortgage lending and help
develop the mortgage industry.
The new law is Tajikistan’s first legislative document that formulates
the basis for pledging immovable property and mortgage lending. It will
improve mechanisms for agricultural lending and introduces a number of
other improvements, including:
-Eliminating gaps and contradictions in the existing legislation
-Improving legal mechanisms for levying execution on mortgaged properties
when borrowers fail to fulfill their obligations on repayment of mortgage
credit
-Introducing mortgage notes (zakladnaya) that will circulate in financial
markets as mechanisms for obtaining investors’ finance for mortgage lending
-Introducing land pledging that will enable agricultural producers to obtain
credit
-Introducing pledging of unfinished houses, construction materials, and
equipment
“Adopting the new law introduces a number of incentives that will stimulate
market growth in Tajikistan’s mortgage industry,” said Elena Klepikova,
IFC Senior Operations Officer for Mortgage Finance in Eastern Europe and
Central Asia.
This initiative is part of the IFC Azerbaijan and Central Asia Primary
Mortgage Market Development Project. IFC helped to draft the law and provided
recommendations on streamlining mortgage lending procedures, lien placement,
and the repossession process.
The IFC Azerbaijan and Central Asia Primary Mortgage Market Development
Project is funded in part by the governments of Switzerland and the Netherlands.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC's
vision is that people should have the opportunity to escape poverty and
improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.
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