Uzbekistan plans to issue mortgage bonds worth one trillion soums
The securities will be backed by the securitization of mortgage loans.
Uzbekistan has approved a temporary procedure for issuing and trading mortgage bonds within the framework of the regulatory sandbox, the NAPP press service reports.
According to the information, the document regulates the requirements for loans so that banks can include them in the pool, and also establishes criteria for selecting suitable loans for this purpose. The procedure for issuing mortgage bonds, their circulation, as well as transactions, including REPO, is also established.
In addition, the authorities approved the procedure for interaction between securitization transaction participants, which includes the Mortgage Refinancing Company (RRK), the special authorized organization UMRC SPV, as well as original banks, the Central Securities Depository, and the NAPP as regulators.
It is noted that within the framework of the regulatory framework, the special authorized organization UMRC SPV is implementing a pilot project to issue 1 trillion soums worth of mortgage bonds based on the securitization of mortgage loans issued by five banks of the country.
Previously, it was reported that Uzbekistan would make mortgages more affordable with ADB funds. The Asian Development Bank approved a $30 million loan.
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