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IFC Launches Home Ownership Program in Tajikistan


In Moscow:
Ilya Sverdlov

Phone: (7-495) 411-7555

E-mail:
isverdlov@ifc.org

In Dushanbe
:

Dilshod Kholmatov

Phone: (992-48) 701-1455

E-mail:
dkholmatov@ifc.org


Dushanbe, Tajikistan, June 4, 2007 — IFC, the private sector arm of the World Bank Group, recently announced a three-year extension for the Central Asia Primary Mortgage Market Development Project in Tajikistan to support the development of housing finance systems based on market principles. IFC will work with the government and the private sector to establish a residential mortgage lending system, a critical effort that will make home ownership affordable for lower- and middle-income people.

IFC’s advisory team will help the government formulate and adopt enabling legislation, while helping banks set up their mortgage-lending operations. Efforts also include training for staff of major mortgage market players and forging partnerships with local media to promote mortgage lending as a key to improving living conditions for citizens of Tajikistan.


These new areas for IFC engagement in Tajikistan address gaps identified in a recent study entitled “Central Asia Housing Finance Gap Analysis.”  It highlights areas where reforms are needed, such as legislative improvements and enhanced institutional capacities for the development of residential mortgage lending.


At the launch ceremony in Dushanbe, Shahbaz Mavaddat, IFC Director for Southern Europe and Central Asia, said, “We look forward to a fruitful collaboration with the government of Tajikistan to develop the country’s housing finance market and to increase people’s opportunities to own a home.”


Santiago Ruiz-Morales, IFC Project Manager, noted, “The project has already begun work in new directions. In particular, with the active assistance of the National Bank of Tajikistan, a working group of the five largest banks in the country has been established to incorporate modern mortgage lending banking practices and technologies as the program is rolled out.” Bringing together Tajikistan’s key mortgage lending players to cooperate on implementation will encourage participation, he added.  “This will create an environment that will allow broad segments of the population to access affordable housing.”


About IFC

IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries.  IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to escape poverty and improve their lives. Through FY06, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit
www.ifc.org.