History of development of mortgage-backed securities in the Kyrgyz Republic
In July 2018 State Mortgage Company OJSC issued the first uncertificated mortgage-backed securities (MBS).
MBSs are considered to be one of the most reliable investment instruments as they give their owners the right to receive investment income and an advantage over other lenders - depositors, billholders, holders of savings and deposit certificates.
The economic basis for wide development of mortgage lending in many countries is the developed market of mortgage-backed securities, through which sources of mortgage loan refinancing are formed in the primary market. MBSs are a means of accumulating free cash in the market from institutional investors such as pension fund, commercial banks, insurance companies, as well as from private investors for further development of mortgage lending.