Govt. preparing to issue govt bonds for $748 mln to develop mortgage. According to Prime Minister Denys Shmyhal: “After the completion of the merger [of the State Mortgage Institution and Ukrfinzhytlo], we are preparing a bond issue worth about UAH 20 billion so that mortgage programs are available to as many Ukrainians as possible.” The parliament 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. Its adoption will in the short term provide about 8,000 mortgage loans and purchase 12,000 apartments for subsequent transfer to financial leasing.
State mortgage institution and Ukrfinzhytlo merged. On September 8 the government approved the merger of the State Mortgage Institution (engaged in refinancing mortgage loans) with Ukrfinzhytlo, which ensures the functioning of the mortgage lending market in Ukraine and introduces financial and credit mechanisms for providing citizens with housing.
NBU raises the interest rate to 8.5%. As expected, on 9 September the National Bank (NBU) raised the interest rate to 8.5%. The move is aimed at combating soaring inflation and reassuring Western donors of the central bank’s independence. Consumer-price growth has exceeded 10% for the first time since 2018, reinforcing expectations of another increase in borrowing costs. At 10.2%, inflation in Ukraine trails only Turkey in the region. The decision comes as IMF officials prepare to review Ukraine’s efforts toward unlocking a $5 billion loan that’s been frozen for months and is set to expire at year-end