While larger Financial Institutions (FI) in Kyrgyzstan are now experienced with providing housing loans, some of them will need assistance in establishing adequate products for rural customers. Furthermore, Financial Institutions need to build a solid refinancing base in local currency and therefore need to develop and market savings products (including the contract savings product that shall be implemented by State Mortgage Company (SMC)), taking into consideration the peculiarities of the rural areas. Furthermore, FIs will be assisted by the Consultant in implementing and improving their environmental and social standards.
Financial Institutions need to build a solid refinancing base in local currency and therefore need to develop and market savings products (including the contract savings product that shall be implemented by SMC) in housing finance area.
1. Enhancement of credit origination, servicing and execution (criteria and processes; staff and IT capacity) as well as general and credit risk management capacity based on the results of the due diligence in FI
- Review of origination, servicing and execution criteria and processes
- Review staff, IT and risk management capacity
- Propose FI specific capacity building roadmap and monitor implementation
- Implement internal capacity building workshops
2. Analysis of loan demand and adjustment of product policies and marketing regarding the specific needs of rural housing finance in FIs is done.
- Assessment of demand of FI's client base for different types of housing loans
- Design/ enhancement of existing and introduction of new housing finance products
- Testing of new / revised housing / mortgage loan products
- Design and implementation of an adequate marketing strategy for housing / mortgage finance products or revision / amendment of existing marketing strategy
3. Long term refinancing in local currency in FIs is improved.
- Review of asset-liability and liquidity management system and procedures with regards to specific requirements of long-term and mid-term housing lending
- Develop and implement a deposit taking strategy, including training of client services advisors and conducting marketing campaigns
- Improve the treasury functions of the FIs, and the liquidity management
- Implement training on deposits, liquidity, asset liability management and hedging
4. Environmental and Social Policies are improved and implemented in FIs.
- Assist the FIs in complying with the Environmental and Social standards