OREANDA-NEWS. On 29 July 2008 was announced, that IFC, a member of the World Bank Group, had launched the Central Asia and Azerbaijan Mortgage Lending Advisory Project, which focuses on serving the banking sector in Azerbaijan, Kazakhstan, Kyrgyzstan, and Tajikistan. The objective is to provide direct support to commercial banks in implementing or upgrading their mortgage lending programs.

Banks in Azerbaijan and Central Asia have expressed a need for high-quality direct support to develop their mortgage lending facilities and provide a significant and immediate impact in the region, where housing finance is not a tradition.

“This project will help create a foundation for long-term growth and security in the local mortgage market through the transfer of best practices in mortgage lending to local commercial banks. With the current market instability, this is now more important than ever,” said Garth Bedford, IFC Project Manager.

The banking sectors in the four countries have different levels of experience in mortgage lending. Kazakhstan is the most advanced, but Kazakh banks realize the need for further improvements to ensure a high-quality portfolio and lay the ground for future securitizations. Through the delivery of advisory services, including support in product development and origination, underwriting, and servicing procedures tailored to the needs of individual banks, IFC will provide the means necessary for banks to begin implementing these changes quickly.

“IFC has been working to develop the primary and secondary mortgage sectors in Kazakhstan for the past three years. This project will continue advancing this effort, helping banks in Kazakhstan and Central Asia create a mortgage lending environment that is recognized in domestic and international markets as secure and suitable to engage in,” said Rolf Behrndt, Senior Operations Officer of IFC Advisory Services in Southern Europe and Central Asia.