10:56 27.03.2013

Ukrgasbank, Oschadbank issue around 30 beneficial mortgage credits in 2 weeks, says construction ministry

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State-run Oschadbank and Ukrgasbank controlled by the government (both based in Kyiv) as of March 26, 2013 issued around 30 credits under the beneficial mortgage crediting program, the press service of the Regional Development, Construction, Housing and Utilities Economy Ministry of Ukraine has reported, referring to Minister Hennadiy Temnyk.

Temnyk said that the most active regions in participation in the program are Vinnytsia and Zakarpattia regions, where 11 families became program participants in two weeks.

Since the start of 2013, no credit under the program was issued in 13 regions and Crimea.

According to the the State Economic Stimulation Program for 2013-2014, which the government approved by decree No. 187 of February 27, the government has decided to spend UAH 5.1 billion in 2013-2014 on realizing a program to cut the cost of mortgage credits to buy apartments for people whose living conditions are to be improved. The amount of funds is enough to issue 6,700 credits with the subsidizing of credit rates in 2013 and 6,900 credits in 2014. Only UAH 600 million of the total sum will be financed from the national budget, while among the sources for the rest of the funds is the attraction of government-secured funds.

As reported, the national budget for 2013 foresees UAH 300 million for the financing of the program, which is 3.3 times less than was planned in 2012 (UAH 1 billion).

Board Chairman of the State Fund for Promotion of Youth Housing Construction, Leonid Rysukhin, said that the funds are enough for 12,000-15,000 families.

Some 1,227 credit agreements worth UAH 284.04 million had been signed as of January 3, 2013 under the affordable housing program, foreseeing the compensation of a part of interest on mortgage credits, including 243 agreements worth UAH 80.697 million signed in Kyiv, the ministry said earlier.