Kyiv, Ukraine February 29, 2008 —IFC,
a member of the World Bank Group, has partnered with Ukraine’s State Mortgage
Institution and Russia’s Agency for the Housing Mortgage Lending to help
develop the secondary mortgage market in Ukraine. Top representatives
from the Russian agency recently hosted a meeting in Moscow for their Ukrainian
colleagues, sharing their experience working with IFC on introducing the
mortgage note into the Russian market. They also discussed prospects for
developing the primary and secondary mortgage market in both countries.
The meeting, facilitated by IFC, aimed to help the State Mortgage Institution
understand and define its role in developing the mortgage market in Ukraine,
using Russia as a model.
“This meeting marked the beginning of a fruitful cooperation between the
three organizations. It was very helpful to hear from our Russian colleagues
about their experiences. We hope that the lessons they learned along
the way will help us achieve similar impact in Ukraine,” said Sergei Volkov,
Deputy Head of the State Mortgage Institution.
“The State Mortgage Institution has an important role to play in developing
the secondary mortgage market in Ukraine. Through a close cooperation with
us, the company will use a mortgage note to purchase pools originated in
local currency. This will increase the liquidity of the market in the country,
a key objective of the IFC Ukraine Mortgage Development Project,” said
Dermot Hannigan, IFC Project Manager.
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC's
vision is that people should have the opportunity to escape poverty and
improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.
About the State Mortgage Institution
SMI facilitates the development of the housing finance market in Ukraine
by providing refinancing facilities to local banks that originate mortgages
in Ukrainian hryvna. It also aims to provide cheaper mortgages for citizens.
Due to a reduction in interest rates, the market saw a significant growth
of loans in hryvna-denominated mortgages (11.3 percent) during the latter
part of 2007. For more information, visit www.ipoteka.gov.ua.
About the Agency for the Housing Mortgage Lending
AHML’s objective is to increase liquidity of Russian banks through mortgage
refinancing. As of February, 1, 2008, the agency had refinanced more than
110,046 mortgage loans in the amount of 79,512 million Russian rubbles
(equivalent to 15,902 million Ukrainian hryvna). For more information,