REUTERS
An expert says a lot depends on how Ukraine is exiting from the quarantine.
First Deputy Governor of the National Bank of Ukraine (NBU) Kateryna Rozhkova has said reducing rates on mortgage loans to 10% per annum in Ukraine is possible after quarantine-related restrictions are lifted.
"We need transparency on the real estate market and a solvent borrower to resume mortgage operations. Therefore, a lot depends on how we are exiting from the quarantine. If all restrictions are lifted by the end of Q2 and businesses start to recover, we will talk about the relaunch of the mortgage [market] by the end of the year," she said in an interview for FinClub.
Read alsoNational Bank allows Ukrainians not to pay off mortgage amid coronavirus quarantine
Rozhkova also mentioned another important point. If banks build their interest rate policy properly, the price of a loan may decrease by the end of the year so that a mortgage at 10% becomes a reality. "There were times when currency [loans] were issued at 12%," she added.
In addition, according to the banker, it is necessary to solve a number of legal issues, such as a foreclosure ban on foreign currency mortgages.
"The third point is the legal risks that banks include in the cost of mortgages. For example, a foreclosure ban on foreign currency mortgages. The [risks] need to be addressed. The mortgage will not be relaunched without this," Rozhkova said.
Moreover, she stressed the relaunch would have a positive impact on related industries and would become an incentive for economic recovery. Therefore, the National Bank continues to work with banks on rates, products, the price of loans, as well as interacting with the Justice Ministry and the Cabinet of Ministers.
As UNIAN reported earlier, Ukrainian President Volodymyr Zelensky said mortgage loans would be issued at 10% per annum in Ukraine soon.