The European Bank for Reconstruction and Development (EBRD) approved a synthetic local-currency facility worth up to $40 mln for the Mortgage Refinancing Company of Uzbekistan (UzMRC), the country’s sole mortgage refinancing institution. The funding will help secure a stable source of medium-term finance in Uzbek soums and set up the creation of a more efficient and standardised mortgage market.
The EBRD says the loan will reinforce UzMRC’s role as a central player in the long-term development of the housing finance system. It will also improve access to affordable mortgages and encourage greater private-sector participation. A substantial share of the funds will also support the expansion of Uzbekistan’s green home renovation programme. The programme will back investments in insulation, efficient windows and doors, air-conditioning upgrades and solar systems.
The project is expected to help consolidate high-quality mortgage portfolios with consistent credit and reporting standards.
UzMRC CEO Muradjon Farmonov welcomed the agreement, noting that it was signed alongside a €30 mln synthetic local-currency loan from the French Development Agency.
«Both loans will reach households in Uzbek sums to support homeownership,» he said. «The French Development Agency’s funding will be used entirely for green purposes. Household energy consumption accounts for about 40% of national usage, so it is vital we build homes that are more efficient and produce less carbon dioxide.»
Farmonov added that around 10% of the EBRD loan will also finance green renovation projects, underlining the importance of energy efficiency across Uzbekistan.
«This is not just about households,» he said. «Uzbekistan is working to make every sector more energy efficient, from industry down to individual homes.»
To date, the EBRD has invested nearly €5.6 bn in Uzbekistan through 193 projects, most of them supporting private-sector growth and wider economic development.
