The Financial Stability Council has approved the Strategy for the Development of Mortgage Lending in Ukraine. This document aims to stimulate economic growth and demographic development, particularly in the context of war, as well as during the future recovery of the state.
This is reported by Business • Media
Key Steps of the Mortgage Lending Strategy
The developed strategy aligns with the requirements of the International Monetary Fund and includes a number of important initiatives:
- Implementation of European Union regulations into Ukrainian legislation regarding mortgages, standardization of property valuation, and the creation of an open database of real estate prices to improve information exchange.
- Introduction of affordable mortgage insurance against war risks.
- Improvement of legislation to enhance the transparency of construction processes, reduce the risk of unfinished buildings, and ensure transparency in the sale of properties that are still under construction.
- Updating the strategy of the state mortgage lending program “eOselya” — the company “Ukrfinzhytlo,” as well as improving the conditions of state support for mortgage borrowers.
- Defining conditions for the issuance of covered bonds and introducing securitization mechanisms.
Development of the “eOselya” Program and the Mortgage Lending Market
Currently, Ukrainians are actively using the state program “eOselya” — over 95% of mortgage loans are issued within its framework. This year, 2,334 mortgage loans have been issued totaling 4.3 billion hryvnias. However, the volume of mortgage transactions outside of state support is also increasing: currently, their share stands at 4.5%, which is twice as much as last year.
The strategy for the development of mortgage lending is aimed at developing market mechanisms to ensure overall economic and demographic growth during the war and post-war recovery and reconstruction.