Monday, October 27, 2008

Finance Ministry proposes to reorient mortgage crediting

Finance Minister Viktor Pynzenyk explained why the Cabinet proposes to reorient funds for construction of free housing to the first payment, he told in his speech during a meeting of Prime Minister Yulia Tymoshenko with industrialists and entrepreneurs.

Pynzenyk underscored that it is necessary to envisage capitalization of the OshchadBank and the UkrExImBank and the State Mortgage Establishment with changing the guidelines of their activities in the Draft State Budget 2009.

The UkrExImBank will work to support the Ukrainian export. The OshchadBank should work for the mortgage, and there is also the State Mortgage Establishment that supports the whole sector of mortgage crediting, the minister said.

In order to expand possibilities of mortgage credits for the housing construction, simultaneously, another amendment into the Ukrainian legislation is made. The funds available today and going to the so-called free housing construction, are sent to a sphere of the first payment. Therefore, a range of the people is expanded who can use it, the minister explained.

On October 22, the Cabinet endorsed a bill on minimization of the world financial crisis impact on Ukraine. With the aim of supporting a system of mortgage crediting of housing and housing construction, a bill in particular provides for receiving first payments for construction (purchase) of the housing by citizens at the expense of the state and local budgets.