Almaty, Kazakhstan, February 6, 2019— IFC, a member of the World Bank Group, and the Housing Construction Savings Bank of Kazakhstan (HCSBK) are launching the next stage of a project to help expand the availability of housing finance in the country.
The two institutions have already conducted an assessment of HCSBK’s current operations, as part of a joint advisory project to help the bank grow its housing portfolio by aligning its mortgage lending operations with international best practice. The project will now enter its second phase—finetuning HCSBK’s product offering and launching new products and services to meet changing market demand.
“In Kazakhstan, a housing construction saving system is the most affordable way to purchase a house. It is trusted by more than 1.3 million people, or 13.8 percent of the working population,” said Lyazzat Ibrahimova, Chairman of the Board of HCBSK. “We have already helped 172,000 Kazakhstani people improve their living conditions. Taking the bank to the next level will help attract additional investment and introduce new housing finance solutions for our customers.”
Housing finance currently represents only 2 percent of Kazakhstan’s GDP, compared to more than 50 percent in the United States and Europe, offering significant potential for Kazakh banks and financial institutions.
“Our aim is to help HCSBK identify a path for sustainable growth, through insights gained from our work in other countries where banks have adapted to changing market conditions,” said Cassandra Colbert, IFC’s Regional Manager for Central Asia. “HCSBK’s new products and services will allow the bank to expand its offering of affordable mortgage loans and set the stage for a healthy development of the Kazakh housing finance market.”
IFC is a leading international investor in housing finance, offering a unique combination of investment services and expertise to catalyze the development of sound, accessible housing finance markets.
About HCBS
Housing Construction Savings Bank of Kazakhstan is the only bank in Kazakhstan with a housing construction savings program. The program is intended for improvement of housing conditions of people through attracting funds of depositors to housing construction deposits and granting them with housing loans. The sole shareholder of HCSB is Baiterek National Management Holding. The bank organizational structure includes a headquarters in Almaty city and 17 regional subsidiaries. For more information, visit www.hcsbk.kz .
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org .
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