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Add to Preferred SourcesIFC, a member of the World Bank Group, is helping the House Construction Savings Bank of Kazakhstan (HCSBK) ramp up its mortgage lending, providing crucial finance to prospective homeowners across the country. IFC will provide advisory support to help the bank grow its housing portfolio and bring its mortgage lending operations in line with international standards, providing expertise and skills in numerous areas.
“Nowadays in Kazakhstan a system of housing construction saving is the most affordable way to purchase a house. It is trusted by more than 1.2 million people which is 13.1% of the total economic active population in the country. The bank has already provided mortgages to 160,000 people, including 4,500 in October of this year, a record for the bank,” said Lyazzat Ibrahimova, Chairman of the Board of HCBSK. “To have even more homeowners, the bank intends to take its operations to the next stage of growth. This will attract additional investment and help introduce new housing finance solutions, thus allowing our customers to receive qualitative services and become homeowners.”
Housing finance offers significant potential for banks and financial institutions in Kazakhstan. However, this type of financing currently represents only 2 percent of the country’s GDP, compared to more than 50 percent in the United States and Europe.
“We believe that a strong housing sector is critical for Kazakhstan’s sustainable development. Financial institutions, such as House Construction Savings Bank of Kazakhstan, can play an important role in helping drive the growth of this sector,” said Cassandra Colbert, IFC Regional Manager for Central Asia. “The bank is in an ideal partner in our efforts to strengthen the competitiveness of Kazakhstan’s banking sector and promote financial inclusion throughout the country.”
IFC is a leading international investor in housing finance. To catalyze the development of sound and widely accessible housing finance markets, IFC offers a unique combination of investment services and top-notch expertise. One of IFC’s global objectives is to help finance one million homes to create 5 million jobs by 2020.
Original source: IFC
Published on 12 November 2018