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Only 16.4% of UAH 170.5 million earmarked in the 2017 national budget will be given under government-funded programs to provide citizens with affordable housing, according to the State Fund for Youth Housing Assistance.
Some UAH 142.5 million of the said sum will be spent on government commitments under previously concluded loan agreements, the Fund's press service told UNIAN.
"As was the case in 2016, there is virtually no spending from the state budget's general fund in 2017 on existing programs for affordable housing. The funds provided for a program to reduce the cost of mortgage loans and a program to partially compensate interest on housing loans for the youth will be used in full to perform the state's obligations under previously concluded loan agreements," the press service quoted First Deputy Chairman of the State Fund Sergiy Komnatny as saying.
Read alsoRegional Development Ministry seeks to improve construction industry legislation in 2017In his words, the 2017 budget's special fund envisages up to UAH 28 million for boosting the authorized capital of the State Fund for Youth Housing Assistance, which will be used for concluding new agreements.
"The increase of the State Fund's authorized capital to UAH 28 million means that there is only UAH 2 million more than the sum earmarked last year, and it will be used for providing housing loans at reduced rates to young people. Thus, this is a relative increase in budget expenditures on Fund-implemented housing programs this year," Komnatny said.
The law on the national budget of Ukraine for 2017 envisages UAH 81.1 million for the program to reduce mortgage loan rates. Another UAH 61.4 million will be spent on the program for partial compensation of interest on housing loans issued to the youth. Under the law, UAH 28 million will be allocated to increase the authorized capital of the State Fund for Youth Housing Assistance, and another UAH 6.85 million will be spent on its financial support. Yet, the state budget has no funds for a program for the construction of affordable housing when the government is committed to allocate 30% of housing costs on non-repayable terms if a buyer has accumulated 70% of the price of a house or a flat.
As UNIAN reported earlier, the state budget in 2016 foresaw UAH 164 million for government-funded housing programs.