Government has adopted a protocol decision on the development of state housing finance instruments
The Cabinet of Ministers of Ukraine has adopted a protocol decision on the further development of state housing finance instruments and the coordination of the work of institutions implementing housing programs.
The decision provides for the preparation of a draft act designating the Ministry of Economy, Environment, and Agriculture of Ukraine as the governing body of the State Specialized Financial Institution “State Fund for the Promotion of Youth Housing Construction.”
At the same time, the document emphasizes that State Fund for the Promotion of Youth Housing Construction (Derzhmolodzhytlo) and Ukrfinzhytlo will continue to operate as separate legal entities and implement their programs under current conditions.
“The state has various tools to support people in purchasing housing, and it is important that they operate within a common framework. Derzhmolodzhytlo has experience implementing targeted housing programs, while Ukrfinzhytlo has experience scaling affordable mortgages through banks. We want to effectively combine these capabilities and create a foundation for attracting additional financing to the housing sector,” noted Vitalii Petruk, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.
The protocol decision also provides for consultations with international financial organizations regarding joint projects in the field of housing finance. The Ministry of Economy, Environment, and Agriculture will actively cooperate with partners, particularly in implementing their recommendations on the development of financing instruments for the housing sector in Ukraine.
Background information
The State Specialized Financial Institution “State Fund for the Promotion of Youth Housing Construction” implements state and local housing programs, including loan programs for young people, internally displaced persons, and other categories of citizens who need support in purchasing housing.
PJSC “Ukrainian Financial Housing Company” is the operator of the state program for affordable mortgage lending, eOselia. The program launched in October 2022 and is being implemented by the Ministry of Economy, Environment and Agriculture in collaboration with the Ministry of Digital Transformation, Ukrfinzhytlo, and partner banks. The Ministry of Social Policy, Family and Unity, and the Pension Fund of Ukraine are involved in the implementation of the compensation mechanism for IDPs and residents of frontline territories.