OREANDA-NEWS. Out of 2,315 applications from borrowers, who wanted their debts on mortgage loans to be refinanced, JSC Halyk Bank refinanced 1,648 loans totaling 8.552 billion tenge.

"We expect that by 15 March 2016, once the program is completed, we will work out more than 600 applications pending their consideration now - said Daniyar Dauletov, Deputy Director of the Bad Loan Department of JSC Halyk Bank. - We are in close contact with our mortgage borrowers, we are open to dialogue, and meet regularly both associations and individuals.”

You will recall that JSC Halyk Bank has signed a deposit agreement with JSC Problem Loans Fund in the amount of 33.6 billion tenge for 20 years as part of the mortgage housing loans / mortgage loans refinancing government program approved by the Resolution of the Board of the National Bank of Kazakhstan No.69 dated 24.04.2015. Those funds were used to refinance the debts on the mortgage housing loans / mortgage loans of the Bank’s customers.

The mortgage housing loans / mortgage loans that were issued to the borrowers by the Bank during the period between 1 January 2004 and 31 December 2009, secured by a single property being either a real estate or a land lot, and meet the requirements of the Program are only subject to refinancing. The Program provides debt refinancing at the rate of no more than 3% per annum, the borrowers will be able to convert foreign currency loans in tenge and increase the loan term to 20 years.

Under the terms of the Program, loan refinancing is carried out as follows:

  • Mortgage housing loans / mortgage loans of the borrowers, who, under Kazakhstan laws, are referred to the socially vulnerable population as of 1 January 2015;
  • Mortgage housing loans;
  • Mortgage loans (consumer loans).

The priority will be determined by date and time of receipt of applications from borrowers.

The Bank regularly makes suggestions to the National Bank of Kazakhstan to soften the Program conditions and expand the range of customers, whose loans can be refinanced. 

Short list of documents to be submitted by the borrower / co-borrower for review of the loan application to refinance the loan:

  1. Application to refinance the loan;
  2. The identity documents of the borrower/co-borrower/mortgagor (in case of their participation) / spouse of the borrower/co-borrower/mortgagor;
  3. Certificate of marriage (if married) / notarized statement by the mortgagor that at the time of applying for refinancing of the mortgage housing loan / mortgage loan he/she has not been married;
  4. Documents confirming that the Borrower is referred to the socially vulnerable individual under the law;
  5. Report of independent appraiser on real estate appraisal (this document is only issued to borrowers, who have bad loans, supported by a judicial act);
  6. Certificate of real property (availability/absence) in the Republic of Kazakhstan from the borrower and his/her spouse (certificate issued by the competent government agency);
  7. Certificate of registered rights (encumbrances) on immovable property and its technical characteristics (certificate issued by the competent government agency);
  8. Statement of registered and terminated rights (encumbrances) on immovable property (certificate issued by the competent government agency);
  9. Other documents may be requested by the Bank while considering an application.

To apply for refinancing of the loan, the borrower must provide to the appropriate division of the Bank a complete package of documents requested by the Bank to make the decision to refinance the loan.

Thus, the mortgage program operates the rate of 12.5% (annual effective interest rate (AEIR) – min. 14.3%); and the refinancing program for the mortgage loans issued by other second-tier banks provides a reduced rate of 11.5% per annum.