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Ukraine's Ministry of Regional Development, Construction, Housing and Utility Services of Ukraine intends to launch a state program of preferential mortgage lending, in particular, lending program "For the Youth" and "Affordable Housing" program, which will help bring the housing market out of stagnation, said Regional Development Deputy Minister Roman Abramovskiy.
"We suggest the Verkhovna Rada to adopt amendments to the legislation and to set an interest rate under the youth lending program at 10% ... we also want to resume funding under the "Affordable Housing 70/30" program," Abramovskiy said.
The ministry estimates the funding needs under the programs at about UAH 2 billion, UAH 1 billion for each program.
Abramovskiy noted the initiative would also help bring Ukrainian real estate market out of stagnation.
As UNIAN reported earlier, in early May, the Regional Development Ministry suspended signing new contracts under the program envisaging partial compensation of interest rates on commercial banks loans for young adults for housing construction and purchase due to lack of funds.
UNIAN memo. In February this year, Chairman of the Verkhovna Rada Committee on Family Matters, Youth Policy and Sports Artur Palatnyi reported that a state preferential mortgage lending program for the youth, which has been put in place since 1998, was actually suspended due to lack of necessary budget funds. According to Palatnyi, against a backdrop of a difficult economic situation in the country that has been aggravated by ongoing hostilities in the east of Ukraine, the lack of affordable housing makes young adults leave their homeland.