DAMU Launches Nurly Zher Program

DAMU Launches Nurly Zher Program

DAMU Entrepreneurship Development Fund starts subsidizing loans for private developers participating in Nurly Zher program, Kazinform correspondent reports.

In 2017, republican budget provides 10.7 billion tenge in subsidies. According to the Fund’s press service, in 2018 it is expected to commission 300 thousand sq. m. of housing.

“Second-tier banks provide loans for private developers at the rate of +5 percent to the base rate of the National Bank at the time of the approval, i.e. today it is 16 percent a year. Of them 7 percent are subsidized by DAMU and developer pays the remaining 9 percent. Subsidies are provided for new loans of entrepreneurs involved in construction of residential buildings, but not reconstruction or restoration of existing buildings”, said Togzhan Almantayeva, director of DAMU subsidizing department.

The maximum subsidized loan term is 36 months without prolongation.

Under the terms of the program, a private developer is obliged to sell at least 50 percent of the constructed housing through the House Construction Savings Bank of Kazakhstan at fixed prices – up to 260 thousand tenge for 1 sq. m. in Astana and Almaty and suburbs, and up to 220 thousand for 1 sq. m. tenge in other regions.

The cost of construction of 1 sq. m. of individual housing does not exceed 120 thousand tenge (excluding the cost of engineering and communications infrastructure).

The program also provides for subsidizing interest rate of second-tier banks’ mortgage housing loans to the population through Kazakhstan Mortgage Company.

Damu Entrepreneurship Development Fund JSC is a national development institution fully owned by Baiterek National Management Holding JSC. The mission of the Fund is promotion of qualitative development of SMEs, as well as microfinance organizations as integrators and financial and consulting services providers.