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Number of mortgage loans has seen an 83% year-on-year increase in Kazakhstan

24.12.2018, 19:59 3539

Mortgage lending has seen an 82.5% increase during the year in Kazakhstan. For October this year, the number of bank loans in the sector has reached KZT 69.5 billion, Ranking.kz informs.

The national 7-20-25 programme has been the main driver of mortgage loans growth, with loans for KZT42.4 billion been issued in a given period.

Against the background of the increasing demand of the population for mortgage loans, their share in the banks' loan portfolio has risen to 9.8% by late October of this year, in 2017 - 8.2%, in spite of a 2.6% reduction in the second-tier banks' loan portfolio.

On top of the increase in mortgage lending's share and demand, the size of an average mortgage loan also rises. As of the end of October, each Kazakhstan citizen owes a mortgage debt of 68.4 thousand tenge on average.

Out of 28 second-tier banks, 8 banks are involved in the programme, with Bank CentreCredit taking the lead approving over 3 thousand applications out of 4 thousand submitted for a total amount of KZT 35 billion.

ATF Bank ranks second - with 213 approved applications from 588 for KZT 2.6 billion. It is followed by Halyk Bank - 138 approved applications out of 347, with a total amount of KZT 1.8 billion. The share of the above banks accounts for 93% (KZT 39.5 billion).

By late October, Baspana granted the national programme's participants loans for KZT 21.9 billion.

On December 17, the international rating agency Fitch upgraded the Baspana mortgage institution's long-term issuer default rating to BBB level with a stable outlook (AAA in national currency), that coincides with Kazakhstan's long-term issuer default rating.

For comparison, other organizations providing mortgage loans - Kazakhstan Mortgage Company and House Constructions Savings Bank - have long-term default ratings equalling BBB.

The number of the applications submitted for the national programme is 5.6 thousand, of which 3.5 thousand or 63% are approved, with Astana and Almaty keeping their leading positions (1.7 and 1.5 thousand applications respectively).

However, the leaders in terms of approved applications are Western Kazakhstan and the Akmola region - 73.5% and 73.2% respectively.

The lowest involvement has been observed in the Turkestan, Northern and Pavlodar regions, with a cumulative number of applications totaling 79 people, of whom 30 applications have been approved.

Source: BNews.kz

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