DUSHANBE. June 3. “Asia-Plus” -- Mortgage interest rates will not be reduced until commercial banks increase the volume of foreign loans, Head of the National Bank of Tajikistan Sharif Rahimzoda has said.

Having agreed with the fact that mortgage rates in Tajikistan are quite high, Tajik chief banker said that rates are being identified by the market.

“Currently, mortgage interest rates in Tajikistan make 24 and even more percent. Apart from high mortgage rates we have a problem of non-payment of loans,” he said.

He stressed that the majority of Tajik banks issue mortgage credits against mortgage of the purchased property. “For instance, when debtor stops paying interest rate, banks are forced to file lawsuits asking the court to re-register the mortgaged property in bank’s favor. Courts, however, often reject banks’ appeals saying that debtors have many children and have no place to go,” he noted.

He believes that these reasons force banks to refrain from issuing mortgage loans.

Rahimzoda is confident that the law of the republic on mortgage lending should be revised. Tajik banks are still working in the given direction, he added.