Kyiv, Ukraine, September 23, 2008
—IFC, a member of the World Bank Group, has presented to the Ukrainian government and banking sector a set of proposed amendments to the country’s laws that will facilitate the introduction of the use of mortgage notes and refinancing and enable banks to expand access to additional funding to grow their mortgage portfolios.
The amendments were developed by the IFC Ukraine Mortgage Market Development Project, in partnership with the Ukrainian National Mortgage Association, the State Mortgage Institution, and representatives from the country’s major mortgage banks.
“The introduction of the cost-effective mortgage note, is a welcome direction for the Ukrainian mortgage market. It should result in an increased number of mortgages for citizens,” said Oleksiy Pylypets, Executive Director of the Ukrainian National Mortgage Association
.
“During this period of stagnation in Ukraine’s housing-finance sector, the banking sector is looking for an efficient way to support the development of the mortgage market,” said Dermot Hannigan, IFC Project Manager of the Ukraine Mortgage Market Development Project. “IFC will work with the government to adopt the amendments. We hope that improving the legislation will help build a sustainable housing-finance system in the country.”
Since June 2007, IFC has completed a thorough review of Ukraine’s mortgage market and laws affecting the market. IFC has helped the University of Banking of the National Bank of Ukraine develop a training course on mortgage finance. Lectures have been delivered on lending procedures, funding options using a mortgage note, and the issue and turnover of mortgage-backed securities. About 150 university students and 30 lecturers have participated in the course.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
