At the Government session, the Chairman of the Board of Otbasy Bank JSC Lyazzat Ibragimova reported that for 11 months of 2024, the financial institution issued 32,895 loans.

The total amount totalled 571 billion tenge. Of these, 7,861 loans were issued to Kazakhstanis who were on the waiting list for housing. Under the bank's own programmes - 25,034.

40% of loans fall under Nauryz and Otau programmes, under which the bank issued 9,370 loans totalling KZT240bn. Mastering of the programmes began in June and will continue early next year.

"In the current year, the issuance of housing to people in waiting lists was carried out under two state programmes. ‘Bakytty otbasy’ - with a down payment of 10%, participants - families raising children with special needs, persons with disabilities of the first and second groups, large families and orphans. In the country, 3,500 loans totalling 42 billion tenge were issued. The remaining 4, 5 thousand loans were issued to the queue for other categories under the programme "Shanyrak"," Speaker noted.

As of 1 December, the balance of budgetary funds for lending to the participants of the Concept is 45 billion tenge. It will be utilised in the 1st quarter of 2025. Next year, the projected need, taking into account the commissioning of housing is 80 billion tenge.

In order to prevent price growth in the housing market associated with the simultaneous launch of two large mortgage programmes Nauryz and Otau, Otbasy Bank introduced a mechanism for the selection and booking of primary housing by participants through the real estate portal Baspana Market. Under this mechanism, the developer must not increase the price of housing for 12 months. At the moment, within the framework of the programmes, data on 921 objects with 19 thousand flats have been published on the real estate portal Baspana Market. Among them, the top 5 construction companies are highlighted.

"In 2024, the bank accepted in the aggregate 68.7 thousand unique applications for participation in the programme “Nauryz” and “Otau”. During the implementation of programmes there was a deficit of housing in North Kazakhstan, Kyzylorda, Pavlodar and Atyrau regions, which may be repeated in 2025. The planned volume of issues under the Nauryz programme in 2025 is 300 billion tenge," Lyazzat Ibragimova noted.

According to her, the analysis of the programmes showed two pressing problems.

Firstly, many borrowers prefer to buy housing in a clean condition to avoid repair costs. Therefore, the Bank held a number of meetings with representatives of the Association of Property Developers. They will place finished flats on the portal, and buyers will be able to purchase them with a 10% down payment.

Second, to participate in the programme it was mandatory to have KZT1m on deposit, and in case of winning the competition, the borrower had to add 20% in a short period of time. But there was low conversion rate on applications of clients, who had already passed the selection. Of the 2.5 thousand applications, only 39% of customers have an initial deposit of 20%. Therefore, it is proposed to increase the minimum required amount to apply for the programme from 1 to 2 million tenge. This will accelerate the implementation of the programmes.

"Additionally, in order to fully utilise the Programme, the Bank plans to issue an additional 200 billion tenge bonds in 2025 at the National Bank's base rate of 14.25% per annum, up to 7% subsidised by the government. Please make the first coupon payment on 24 January in the amount of 8.18 billion tenge. For successful implementation of the Nauryz programme in 2025, we propose to accelerate the process of allocation of budgetary funds and receipt of subsidies by the Bank before the beginning of interest payment. The above programme is in great demand among young families. Therefore, the Bank plans to continue working in this direction," the Chairman of the Management Board of JSC Otbasy Bank summarised.

#Government session #State Programs