Kyiv, March, 19, 2008—IFC, a member
of the World Bank Group, has presented the results of its study on mortgage
legislation and the use of mortgage notes in Ukraine to the government
and banking sector. The study identifies the amendments for creating an
enabling legal environment for using mortgage notes. It also highlights
the operational and financial benefits of mortgage notes.
Mortgage notes are effective instruments
for transferring mortgage loans from one entity to another in international
financial markets. They have helped develop the mortgage market in many
countries, providing an efficient method for facilitating the refinancing
of mortgage portfolios. Following the successful implementation of a mortgage
note in Russia, IFC is now applying its experience in Ukraine to help develop
the country’s housing finance sector.
“IFC’s findings are very valuable
to the industry. We look forward to the proposed amendments being introduced
and hope that Ukrainian banks will use the mortgage note in the future,”
said Oleksiy Pylypets, Executive Director of the Ukrainian National Mortgage
“Developing the infrastructure for
implementing the mortgage note in Ukraine will help build a sustainable
housing finance system. Using a mortgage note to transfer financial obligations
will enable banks to secure financial resources more effectively,” said
Elena Klepikova, IFC Senior Operations Manager for Housing Finance in Eastern
Europe and Central Asia.
The study was conducted by the IFC Mortgage
Market Development Project in Ukraine. The presentation was followed by
discussions with representatives from commercial banks and government institutions
involved in the regulation of the mortgage market.
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