IMPROVING THE LIVING CONDITIONS OF THE POPULATION IS ONE OF THE PRIMARY TASKS

The spread of coronavirus infection in Uzbekistan has affected the economic condition of the population, as well as events that have occurred in recent days related to natural disasters in Bukhara, which affected more than 5000 buildings, including residential buildings. As well as flooding in Syrdarya region as a result of a dam burst on Sardoba Reservoir after heavy rain and storm, which led to flooding and damage to homes of many citizens. This situation aggravated the issue of providing the population with housing.

Taking into account this situation, on May 1, 2020, the President of Uzbekistan signed the Resolution “On additional measures to improve the living conditions of the population and further expand the mortgage lending”. In accordance with it, based on market mechanisms, a new procedure has been introduced for providing the population with housing through the allocation of mortgage loans. This resolution creates favorable conditions for the population in the acquisition and improvement of housing conditions, contributes to development of the mortgage market, stimulates further development of the housing construction market carried out by private contractors.

In particular, in this resolution for the period from May 1, 2020 to January 1, 2022, banks are allowed to provide mortgage loans for the purchase of apartments in the primary housing market in houses built by private contractors using their own funds and loans from commercial banks. In addition, the maximum size of mortgage loans has been increased, which can be allocated to one borrower for the purchase of apartments in houses built by private contractors on the primary housing market without a “turnkey” condition (without finishing work), as well as apartments the construction of which is completed, the Press Service of the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan reports.

The term of mortgage loans allocated to the population under the new order has been extended from 15 to 20 years, including mortgage loans allocated earlier. It is also envisaged to allocate loans to the population as an experiment for construction and reconstruction of their own houses on land plots provided to individuals in Andijan, Namangan and Fergana regions.

Taking into account the damage caused by the pandemic and other natural disasters to the population, the measures taken will increase the availability of housing and create conditions for its speedy acquisition by the needy citizens of our country.

Moreover, further development of the mortgage market will lead to an increase in the supply of housing on the part of private contractors, the establishment of an effective competitive market environment by increasing the number of market participants – private construction companies, which will reduce the cost of housing.

If to talk about the housing market itself, then its further development is also important for the country’s economy. Since the enterprises of the investment and construction sector are large taxpayers, which generate significant amounts of tax revenues to the country’s budget.

Thus, measures provided for in the resolution are aimed at improving the living conditions of the population, further development of the private housing market and boosting the economy.

Zukhra Shadiyeva,

Deputy of the Legislative Chamber of the Oliy Majlis,

Member of the faction of the People’s Democratic Party of Uzbekistan.