Denys Shmyhal / Photo from UNIAN
The National Bank is cutting the key rate for banks.
Ukrainian Prime Minister Denys Shmyhal says he considers it quite real and possible to reduce the rate on mortgage loans in Ukraine to 10%.
"You can see that the National Bank is cutting the key rate for banks, so today it's already possible to talk about mortgage loans at 10%. Our goal is to continue reducing the cost of lending resources for businesses and individuals. This will revive lending in Ukraine," he told journalists on July 22.
President Zelensky
Earlier, Ukrainian President Volodymyr Zelensky expressed confidence that, despite the crisis caused by the COVID-19 pandemic, mortgage rates in Ukraine would slide to 10% per annum by the end of 2020.
Sequence of developments
Ukraine's Finance Ministry earlier said that certain legislative restrictions related to residence registration prevented the launch of mortgages at 10%.
On June 2, 2020, the National Bank said that the launch of a mortgage at 10% per annum was possible in Ukraine after quarantine-related restrictions were lifted. This also requires that banks pursue proper interest rate policies and resolve a number of legal issues.
On June 23, the prime minister declared the Cabinet's target to reduce mortgage rate to 7%, or even 5%.