The Financial Stability Council has approved the Mortgage Lending Development Strategy, which aims to implement modern market mechanisms to stimulate economic and demographic growth amid the war and during the post-war recovery of the state.
This is reported by Finway
Main Directions of the Strategy and Innovations
The prepared strategy has been coordinated with the International Monetary Fund and includes a number of significant changes. In particular, it plans to adapt Ukrainian legislation to European Union standards in the field of mortgages, introduce property valuation standards, and improve information exchange by creating an open database of real estate prices.
Special attention is given to ensuring affordable insurance for mortgage loans against war risks. It also provides for the improvement of legislation to enhance transparency and reduce the risks of unfinished construction during development, which is expected to positively impact the protection of real estate buyers’ rights.
State Support and Market Prospects
One of the important steps is the update of the strategy for the operator of the state program “eOselya” — the company “Ukrfinzhytlo”. The improvement of state support conditions for mortgage lending is planned, as well as the determination of mechanisms for the issuance of covered bonds and securitization, which will contribute to the development of the financial sector.
The strategy is coordinated with the IMF and includes: the implementation of EU mortgage standards into Ukrainian legislation, as well as property valuation standards and the improvement of information exchange, particularly through the creation of an open database of real estate prices.
Currently, over 95% of mortgage loans in Ukraine are obtained under the “eOselya” program. By 2025, 2,334 mortgage loans have already been issued for a total of 4.3 billion hryvnias. At the same time, only 4.5% of mortgage agreements have been concluded outside the state program, although this figure is twice as high as last year’s result.