Ukrainian authorities are planning to issue government bonds for UAH 20 billion ($748 million at the current exchange rate) for the development of mortgage, Prime Minister Denys Shmyhal has said.

"After the completion of the merger [of the State Mortgage Institution and PrJSC Ukrfinzhytlo], we are preparing a bond issue worth about UAH 20 billion so that mortgage programs are available to as many Ukrainians as possible," he said during a government meeting.

The Cabinet of Ministers on September 8 approved the merger of the State Mortgage Institution (engaged in refinancing mortgage loans) with PrJSC Ukrfinzhytlo, which ensures the functioning of the mortgage lending market in Ukraine and introduces financial and credit mechanisms for providing citizens with housing.

The Verkhovna Rada of Ukraine is currently considering a bill that proposes the issuance of government domestic loan bonds for UAH 20 billion for the implementation of the Affordable Mortgage presidential program. The bill has so far been adopted only at first reading.

It is assumed that government bonds, which will be issued by the Ministry of Finance of Ukraine, will be converted into additionally issued shares of Ukrfinzhytlo to provide citizens with housing and settle issues of financial and economic activities of the company in connection with the merger of the State Mortgage Institution to it.

According to the authors of the bill, its adoption, in particular, will allow in the short term to provide about 8,000 mortgage loans and purchase 12,000 apartments for subsequent transfer to financial leasing.