Ukraine's Cabinet plans to reduce mortgage rate to 5%-7% – PM Shmyhal

Ukrainian Prime Minister Denys Shmyhal says the Cabinet of Ministers plans to reduce the rate on mortgage loans in Ukraine to 7%, or even 5%.

"In general, our goal is 5%-7%, rather than 10%, which is just the initial minimum target for mortgages to move the economy forward," he told Pershyi Zakhidnyi TV Channel, as reported by the Ukrainian TSN TV news service on June 23.

Shmyhal added that the cut is expected as early as this autumn.

"We will create conditions to this end this summer, but the system is large and stable, while inertia is a certain guarantee of the stability of the banking and monetary systems," he said.

As UNIAN reported earlier, Ukraine's Finance Ministry said that certain legislative restrictions related to residence registration prevented the launch of mortgages at 10%.

Prior to this, Ukrainian President Volodymyr Zelensky said mortgage loans would be issued at 10% per annum in Ukraine soon.

The National Bank of Ukraine (NBU) says that reducing rates on mortgage loans to 10% per annum in Ukraine is possible after quarantine-related restrictions are lifted. This also requires the banks' proper interest rate policy and a number of legal issues to be solved.