New IMF Laws, Slightly Increased Mortgage Lending

New IMF Laws, Slightly Increased Mortgage Lending
🔵 The Rada approved two laws yesterday that may clear the way for a resumption of IMF lending in September 2021.
🔵 The parliament has restored jail sentences for officials who lie on declarations of their assets and on assets of close relatives. Neglecting to list an asset worth over $150,000 could be punished by one year in jail.
🔵The parliament also approved a law that will give international legal specialists veto power in a commission that will hire and fire judges. The US Embassy welcomed this approval as “an important step forward toward comprehensive judicial reform.”
🔵Timothy Ash writes from London: “If…these laws are now IMF compliant, then there is a hope still of getting the first review under the Stand-By Arrangement signed off before September and all the 2022 budget discussions.”
🔵 Three quarters of the 495 loans extended under the government’s affordable mortgage program have gone for dachasthe Finance Ministry reports. In the first four months of the program, 14 authorized banks made a total of $15.5 million in loans – 78% to the ‘secondary’ market. Although the program is designed to help young families buy their first home, banks prefer to lend for weekend homes because borrowers can put their primary residences up for collateral. The interest rate is 7%. Ukraine’s prime rate is 7.5%. Banks are considering another $26 million in loans – 81% to the secondary market.

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