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
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.