Business training “Green mortgage mechanisms” was held in Bukhara region on November 21 for the specialists of the banking sector.

Ms. Doina Munteanu, UNDP Deputy Resident Representative in Uzbekistan, has opened the training with a welcome speech:

"As you know, the objective of the project is to provide the rural population of Uzbekistan with improved, affordable and environmentally friendly living conditions. The project seeks to transform the  rapidly growing rural housing sector in Uzbekistan towards a more sustainable and low-carbon development pathway that will reduce the corresponding greenhouse gas emissions."

The training was attended by 30 representatives of specialized banks in Uzbekistan, such as: Qishloq Qurilish Bank, Uzpromstroybank, Ipoteka Bank. The training participants got acquainted with the essence and significance of “green mortgage” bank product in line with international best practice, as well as the main advantages and mechanisms of "green" mortgage, including procedures and financing schemes for "green" mortgage within the framework of the State rural housing programme.

Green mortgage is a bank product that allows the homebuyers to purchase energy-efficient and low-carbon houses. In addition to energy-efficient materials, solar panels are installed in low-carbon houses, which provide the house with its own electricity sufficient for lightning needs and with hot the water.  The advantage of such a house is an opportunity to save on electricity and heating, this is beneficial for the owner and the environment, because due to the fact that energy received from burning hydrocarbon fuel is not wasted in lighting and heating the house, accordingly greenhouse gas emissions are reduced.

According to Mr. Murod Rasulov, the Project Manager of «Market transformation of sustainable rural housing in Uzbekistan” project, 800 rural households already have access to the “green” mortgage in 5 pilot regions (Samarkand, Bukhara, Surkhandarya, Ferghana, Khorezm regions) to purchase single family houses, and it is noteworthy that the proportion of women as borrowers exceeded 53%. Based on the successful implementation of the project in Bukhara region and taking into account the level of professionalism of construction companies, it is planned to test financing the first low-carbon multi-storey apartment building in Bukhara region in 2020. Based on the success of this experience, the project will begin to participate in massive financing of low-carbon apartment buildings throughout the country.

The bank experts gained new knowledge on a specialized banking product that they can use in their future work, which is important at the current stage of the country's economic reforms.