National Bank publishes mortgage lending development strategy
The National Bank of Ukraine (NBU) has published a mortgage lending strategy approved earlier by the Financial Stability Council and the NBU Board, aimed at developing market mechanisms and housing affordability.
"Our lending development strategy, approved a year ago, has proven its effectiveness. We have new agreements with various state institutions to give impetus to the development of market mortgages," the NBU website reported, citing a comment by National Bank Governor Andriy Pyshnyy.
It is noted that the strategy, developed in accordance with the concept agreed with the International Monetary Fund, provides for a number of infrastructure changes. Its main goal is to calibrate state support in accordance with market conditions and create an efficient housing market.
Key objectives identified within the strategy include reducing the level of risks through the introduction of a mass war risk insurance product and improving the legislative regulation of residential real estate construction.
The strategy also aims to ensure accessible and understandable lending by improving the state support model and disclosure standards in accordance with EU norms. The document provides for strengthening the protection of creditors' rights by updating the procedures for resolving problem debts.
"In addition, the further development of mortgage lending and its scaling will be ensured by the development and implementation of securitization and covered bond issuance into Ukrainian legislation," the regulator noted.
The implementation of the measures envisaged in the mortgage lending development strategy is entrusted to the National Bank, the government and the National Securities and Stock Market Commission. An important role is also assigned to the Verkhovna Rada, which must ensure the introduction of relevant amendments to the current legislation.
The implementation of most of the strategy's measures will begin in parallel, but legislative reforms will require more time. A Roadmap will be developed to detail all measures. In the future, this strategy should become an element of the broader Housing Strategy.
