Mortgage lending in the modern state’s economy is of paramount importance, and determines the possibility of solving the most important problem of providing housing for citizens. The solution of the housing problem is a major social and macroeconomic aspect of the economy management. The housing problem affects interests of the majority of the population of the Kyrgyz Republic, which gives special importance to this topic. In the course of the study, the author revealed that mortgage lending is just beginning its development in the Republic. Its feature is high interest rates, which is associated with the underdevelopment of the banking sector and high-risk borrowers. Presented conclusions will be of interest to professional participants of the mortgage lending market.
Highlights:
►the low purchasing power of the population and legal entities in the whole country affects the fact that the number of real estate transactions is small
► recently mortgage lending is becoming very popular, despite the complexity of formalization of the documents and the high interest rates on it, because the desire to have their own house makes people go to high risks
► commercial banks are the absolute monopolists of the mortgage lending market, due to the fact that the state is not able to provide cheaper mortgage credits and non-banking sector is not interested in long-term mortgage loans
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