EBRD boosts mortgage market development in Uzbekistan

• EBRD provides a facility of up to US$ 40 million to Mortgage Refinancing Company of Uzbekistan
• Funds to support green and inclusive investment
• Project will bridge funding gap for UzMRC

The European Bank for Reconstruction and Development (EBRD) is providing a synthetic local-currency facility of up to US$ 40 million (€34.5 million) to Mortgage Refinancing Company of Uzbekistan (UzMRC), the only domestic mortgage refinancing institution. 

The loan will enable UzMRC to secure a continuous flow of medium-term local-currency funding, thereby supporting the development of a commercially viable and standardised residential mortgage market in Uzbekistan. It will also strengthen UzMRC’s role as a key institution in driving long-term mortgage market development, improving access to affordable housing finance and catalysing private-sector participation in the market.

A significant portion of the project's proceeds will support the enhancement of a green renovation loan programme to promote investment in energy-efficient and climate-resilient home improvements, such as insulation, window and door replacement, air conditioning and solar energy systems.

Founded in 2019 with the support of the state and local banks, UzMRC is a financial institution supervised by the Central Bank of Uzbekistan. It does not provide subsidised lending, but serves as a secondary mortgage aggregator and lender, providing long-term funding to partner commercial banks of all sizes, both private and state owned, secured against eligible and performing residential mortgages.

The proceeds of the EBRD loan will enable UzMRC to provide long-term local-currency funding to certain private and state-owned banks, bridging a temporary funding gap ahead of its entry into the residential mortgage-backed securities (RMBS) market. The project will also lay the groundwork for upcoming capital market instruments, such as RMBS, by supporting the aggregation of high-quality mortgage portfolios with consistent credit and reporting standards.

The EBRD has invested almost €5.6 billion in Uzbekistan to date through 193 projects, with the majority of those funds supporting private entrepreneurship, contributing to the country’s economic development.