The government-approved strategy to increase housing affordability is reflected by the National Bank of Ukraine in a new report-presentation. Key goals have been identified, including mass insurance of war risks and improvement of legislative regulation of construction.
UNN reports with reference to the NBU press service.
Details
The National Bank of Ukraine, together with the government and partners, has published the Mortgage Development Strategy, which aims to reduce risks and improve access to housing loans.
According to NBU Governor Andriy Pyshnyi, the Lending Development Strategy was approved a year ago. Certain preconditions are needed for banks to provide "affordable loans for housing purchases for millions of Ukrainian citizens." Banks are operationally and financially capable of doing this. Therefore, it is necessary to work on creating conditions, which the NBU will do.
For reference
The NBU explained the key goals within the Mortgage Development Strategy. Among them:
- reducing the level of risks through the introduction of a mass product for insuring war risks and improving the legislative regulation of residential real estate construction;
- ensuring affordable and understandable lending by improving the model of state support and disclosure standards in accordance with EU norms;
- strengthening the protection of creditors' rights by updating procedures for resolving problem debt.
The development and implementation of securitization into Ukrainian legislation will contribute to the further development of mortgage lending. The issuance of covered bonds will ensure its scaling and further development.
The implementation of the measures provided for in the Strategy is entrusted to the National Bank, the government, and the National Securities and Stock Market Commission. The Verkhovna Rada also plays an important role, as it must ensure appropriate changes to legislation, the NBU emphasized.
Recall
In June, work began in Ukraine on the state housing policy strategy, which will include the development of rental housing, financial mechanisms, and support for various population groups.