President Shavkat Mirziyoyev reviewed a presentation on a system of guaranteeing people’s funds in housing construction.
Today, the population of our country has exceeded 37 million people. This year alone, 215 thousand new families have been created, which significantly increases the demand for housing.
This year, high-rise buildings for 100 thousand apartments will be commissioned. Next year it is planned to build houses for 120 thousand apartments.
Nevertheless, amid the increased demand, unfair business activities have appeared in this sphere. The lack of an orderly payment system, digitalization and transparency creates favorable conditions for malpractice. Many citizens transfer funds for new housing directly to developers, bypassing banks, which contributes to the growth of the shadow sector. Housing delivery dates are often delayed and the funds deposited are frozen. Share participation agreements are often not officially registered and drafted in a manner that serves the interests of unscrupulous developers.
In this regard, at a meeting on September 23, the President instructed to develop a system to guarantee the funds of the population when buying housing. The presentation considered the relevant proposals.
As noted, the escrow system has proven itself in foreign experience. Under this model, for each construction project an escrow account will be opened in a commercial bank based on an agreement between the customer and the bank. Settlements for real estate will be made through this account. From the funds accumulated in the account, commercial banks will be able to provide loans to the customer at a reduced rate. Upon completion of construction, funds from the buyer’s escrow account will be transferred to the developer’s account. If the developer fails to fulfill its obligations, the funds are returned to the owner. The funds in the escrow account cannot be foreclosed.
The President approved the proposals and gave instructions to develop a legal basis for the system and integrate it into construction-related ministries and agencies.