Dushanbe, April 18, 2008—
IFC, a member of the World Bank Group, has drafted and lobbied for the adoption of the country’s mortgage law. Signed by the President of Tajikistan earlier this month, the law will enable regulation of mortgage lending and help develop the mortgage industry.
The new law is Tajikistan’s first legislative document that formulates the basis for pledging immovable property and mortgage lending. It will improve mechanisms for agricultural lending and introduces a number of other improvements, including:
-Eliminating gaps and contradictions in the existing legislation
-Improving legal mechanisms for levying execution on mortgaged properties when borrowers fail to fulfill their obligations on repayment of mortgage credit
-Introducing mortgage notes (zakladnaya) that will circulate in financial markets as mechanisms for obtaining investors’ finance for mortgage lending
-Introducing land pledging that will enable agricultural producers to obtain credit
-Introducing pledging of unfinished houses, construction materials, and equipment
“Adopting the new law introduces a number of incentives that will stimulate market growth in Tajikistan’s mortgage industry,” said Elena Klepikova, IFC Senior Operations Officer for Mortgage Finance in Eastern Europe and Central Asia.
This initiative is part of the IFC Azerbaijan and Central Asia Primary Mortgage Market Development Project. IFC helped to draft the law and provided recommendations on streamlining mortgage lending procedures, lien placement, and the repossession process.
The IFC Azerbaijan and Central Asia Primary Mortgage Market Development Project is funded in part by the governments of Switzerland and the Netherlands.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC's vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
.
