regulations adopted by the National Bank on October 11 will be introduced
for commercial banks, MFOs and other lending organizations starting February 1,
In particular, the norm restricts chances to pledge
real estate as collateral to secure a loan.
The regulation was planned to enter into force on July 1, 2019,
but the National Bank decided to postpone it.
Starting February 1, 2020, lending organizations will be
prohibited from issuing loans secured by real estate; commercial banks
will also be prohibited from issuing mortgage loans to MFIs, online lending
and other financial organizations.
The decision was made by the National Bank back on May 20, 2019,
but it will enter into force on February 1, 2020. The regulations are aimed at
preventing growing cases of the loss of real estate pledged as collateral.