JSC "Housing Construction Guarantee Fund" ceased its activities

By the decision of the Sole Shareholder, the subsidiary organization of the Baiterek holding, the Housing Construction Guarantee Fund JSC, ceased its activities by merging with the IO Kazakhstan Mortgage Company JSC.

It is worth noting that the Kazakhstan Mortgage Company also took over the functions of the Fund to provide guarantees for the completion of shared construction.

Thus, the creation of the Unified Housing Construction Operator is at its final stage. It is also planned to change its name to "Kazakhstan Housing Company".

Recall that the Baiterek holding is optimizing its housing block on behalf of the Head of State Kassym-Zhomart Tokayev. For this, the Holding merged its two subsidiaries, Baiterek Development and the Housing Construction Guarantee Fund, into a third - Kazakhstan Mortgage Company. For this purpose, all legislative aspects have been regulated. The CFC will also transfer the functions of the Damu Entrepreneurship Development Fund to subsidize developers.

A single operator will work exclusively with private developers and local executive bodies for the construction of affordable housing through tools such as:

1) financing of housing construction through mechanisms of redemption of bonds of akimats;

2) provision of guarantees for the completion of shared construction;

3) subsidies for commercial loans to private developers;

4) lending to authorized organizations under akimats, as well as legal entities engaged in housing construction within the framework of state programs;

5) financing and implementation of investment projects;

6) conducting analytical research on housing construction issues;

7) mortgage activities on the basis of a license from an authorized body;

8) development of strategic IT-initiatives on the construction of affordable housing.

By streamlining activities and eliminating duplicate functions, general administrative costs will be reduced by 40% or 3.4 billion tenge. The staffing level will be reduced by 32% or 101 units, including the management level.

For reference:

Baiterek National Managing Holding JSC was established in accordance with the Decree of the President of the Republic of Kazakhstan dated May 22, 2013. A key institution of the Government of the Republic of Kazakhstan that meets the advanced standards of corporate governance and ensures the implementation of tasks for the sustainable development of the economy of Kazakhstan through its diversification, support for innovation, development of exports, and increase in labor productivity.

Press service of JSC "National Managing Holding "Baiterek"

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