He noted that until 2020, GIK operated as a bank, providing housing at an annual interest rate of 14%.
“I spoke with people who used GIK's services during that period. Their salaries were 16,000 soms, but monthly loan payments reached 24,000 soms. Now salaries have increased to 70,000-80,000 soms, and the work of GIK has changed dramatically,” the president explained.
Sadyr Japarov also reported that this year about 20,000 families will be able to receive keys to their new homes, and construction is actively ongoing in the regions. In response to a question about GIK's markup on the cost of housing, he stated that providing housing solely at cost is impossible.
“The company must exist for a long time. If we provide apartments at cost, we will have to allocate funds from the budget every year, which could lead to GIK's bankruptcy,” he added.
The president noted that the authorized capital of GIK is about 2 billion dollars, which has significantly increased compared to more than 1 billion dollars last year. He also mentioned that the 400 million dollars that the National Bank transferred to the budget as net profit is directed towards the construction of new residential projects by GIK.
“We provide housing at 4% per annum for a term of 25 years. People are satisfied, as prices for housing from GIK are significantly lower than those of private developers, who offer apartments for 2,000-3,000 dollars per square meter, while the price from GIK in the regions is 750 dollars per square meter, and in the Chui region — 700 dollars. This is the cost of 'turnkey' housing, after which GIK adds 200-300 dollars to this price,” noted Sadyr Japarov.
He also pointed out the frequent mentions of the name Kanibek Tumanbaev, the president's chief of staff, among the population and deputies of the Jogorku Kenesh.
“People say he is only engaged in construction. If you have a construction company and are ready to offer such prices, come to me, I will provide a plot for construction. I have repeatedly gathered private construction firms to discuss this issue, but they laughed, claiming that 'turnkey' housing can only be built for 900-1,000 dollars per square meter. Therefore, we had to take this matter into our own hands,” the president added.
He also mentioned that former Osh mayor Jenishbek Toktorbaev offered his services in the south of the country. “He has been engaged in construction for a long time and before the establishment of GIK, he built houses for 750 dollars per square meter. If you want to participate in construction, come,” emphasized Sadyr Japarov.
Additionally, he expressed the opinion that GIK should not engage in construction independently.
“If they start building, it may lead to various problems, such as theft and rising prices. Therefore, it was decided that GIK would only deal with calculations,” noted the president.
He added that after the completion of construction in Bishkek and the Chui region, GIK will begin building houses in every district center of the country and will engage in the repair and construction of private houses throughout the republic.
