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Kyiv, June 14, 2007—
IFC, the private sector arm of the World Bank Group, today announced a new initiative to develop the Ukrainian mortgage market, in partnership with banks and other mortgage lenders operating in the country. The initiative is the outcome of a workshop convened by IFC, which included key players in the country’s mortgage industry.
Among the participants were representatives from the National Bank of Ukraine, National Mortgage Organization, Ukraine National Mortgage Association, Privat Bank, Access to Credit Initiative, Ukrgasbank, NLB InterFinanz, and other organizations.
The group highlighted issues that constrain the local mortgage market, such as the lack of standardized closing documents for mortgage transactions, including mortgage notes. IFC shared its successful experiences on a similar project in Russia and reported on the progress of its ongoing initiative, the IFC Ukraine Mortgage Note Development Project.
Participants identified specific action items that would form the basis of this new initiative. Plans include:
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Conducting an in-depth legislative analysis of Ukraine’s legal and regulatory environment to determine whether it permits effective use of mortgage notes and identify pertinent gaps
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Developing the necessary regulatory base to ensure a solid legal framework for transactions with mortgage notes, based on findings and recommendations of a legislative analysis
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Developing a standardized form for mortgage notes, including instructions on how to complete the form, in consultation with industry experts
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Facilitating first transactions with mortgage notes on a pilot basis with a few banks, to demonstrate the viability of these transactions in Ukraine
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Conducting training on the legal and financial aspects of working with mortgage notes
IFC will take the lead in identifying priorities and allocating resources. A working group comprised of mortgage industry representatives will move forward with the initiative’s agenda, helping ensure industry consensus as decisions are made and process standardizations are finalized.
When the initiative was announced, Anton Sergeev, Director of NLB InterFinanz in Ukraine, said, “IFC has an important role to play in helping the industry identify key issues and develop common solutions.”
Dermot Hannigan, IFC Project Manager, added, “I appreciate the commitment of the workshop participants to identify priorities.
The formation and future efforts of this group, representing key players in Ukraine’s mortgage industry, are important steps toward increasing the liquidity of the country’s primary mortgage market.”
About IFC
IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries. IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to escape poverty and improve their lives. Through FY06, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit
www.ifc.org
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