Kosta Legal has successfully supported the Asian Development Bank (ADB) and the Uzbek government in establishing and operationalizing the Uzbekistan Mortgage Refinancing Company (UMRC). UMRC is a national wholesale financial institution providing long-term finance to mortgage lenders. It issues bonds in capital markets and uses the proceeds for providing long-term loans to mortgage lenders. It is envisaged that UMRC will bridge the maturity mismatch that lenders face when trying to do long-term mortgage lending using their short-term deposits. This may spur the development of the mortgage market and make mortgages more affordable.
UMRC was established on 1 June 2020 as a joint-stock company owned by a sole shareholder, the Ministry of Finance. Additional shares of UMRC will soon be issued and traded amongst local banks.
The role of our lawyers was to help the government in reviewing and adjusting the Laws on the Central Bank, on Pledge, and on Mortgage, along with a number of subordinate legal acts, to enable unhindered operation of UMRC as well as to assist in developing UMRC constitutive documents, strategy, systems, and policies. We would like to sincerely congratulate our colleagues Mr. Azizbek Akhmadjonov, Mr. Jahongir Olimjonov, and other involved lawyers of our firm on completing this unique and complex project.