In January-September 2024, PrJSC Ukrainian Financial Housing Company (Ukrfinzhytlo), which manages the state program eHouse, increased its assets by 23% to UAH 74.9 billion.
According to Ukrfinzhytel’s financial statements, the company’s retained earnings have increased by 51% since the beginning of the year to UAH 8.9 billion.
As of September 30, 2024, the company’s financial investments in securities amounted to UAH 54.3 billion, and loans for UAH 14 billion were received, of which repurchase agreements amounted to UAH 5.3 billion and long-term loans – UAH 7.7 billion.
In the third quarter, Ukrfinzhytlo signed agreements on opening credit lines with JSC FUIB (up to UAH 1.5 billion), JSC Cominbank (up to UAH 250 thousand), JSC TAScombank (up to UAH 300 thousand and UAH 90 thousand).
The eOselya affordable mortgage lending program was launched in Ukraine in October 2022. Contract servicemen of the Armed Forces of Ukraine, employees of the security and defense sector, healthcare workers, teachers, and researchers can apply for a preferential mortgage at 3% per annum for up to 20 years with a down payment of 20% of the cost of housing.
Starting from August 1, 2023, war veterans, combatants, internally displaced persons (IDPs) and citizens who do not have their own housing larger than the standard area can apply for the eHouse program at a 7% discount.
Under the terms of the program, privileged categories of participants and IDPs can purchase housing in a building under construction and buildings not older than 10 years (in the capital and regional centers), while other participants can purchase housing in a building not older than three years or a building under construction.
The program involves 10 partner banks: state-owned Oschadbank, PrivatBank, Ukrgasbank, Sens Bank, as well as MTB Bank, TAScombank, Globus Bank, Sky Bank, Credit Dnipro Bank, and BISBANK.
As of October 30, 13.8 thousand families have purchased their own housing for more than UAH 22.3 billion, according to Ukrfinzhytl.
Ukrainian Financial Housing Company (Ukrfinzhytlo) plans to significantly increase its share of clients in the primary real estate market and confirms the possibility of issuing 12 thousand loans under the eHouse program, its press service reports.
“The past year has shown that we have the ability to develop eHouse and adapt it to the requirements of the market and customers. We attracted additional funding, despite the difficulties, and sold a loan portfolio that is only UAH 60 million less than the volume of all mortgage lending in Ukraine in the pre-war successful 2021,” Yevhen Metzger, Chairman of the Board of Ukrfinzhytl, was quoted in the release.
According to him, this program has the financial resources to issue approximately 12 thousand loans in 2024.
“Our task is to expand the terms of the program, and we have already done so (amendments to CMU Resolution No. 856 provide for the use of certificates for destroyed housing as a down payment on eHousing – IF). It is necessary to increase the choice of housing, and it is in the primary market, so that the program works more for the recovery of the state’s economy,” Metzger added.
According to Andriy Tarasenko, Head of the Company’s Partnership Projects and Alternative Products Development Department, 55 apartment buildings from 18 developers have already been accredited by banks under eHouse.
“Our priority is the primary market. New modern housing is in demand among citizens today, and our task is to meet this demand,” emphasized Tarasenko.
In this regard, Ukrfinzhytlo calls on banks that have already joined the program and financial institutions that are considering such an opportunity to shift the focus of lending to the primary market.
As reported, the eHouse affordable mortgage lending program was launched in Ukraine in October 2022. Contract servicemen of the Armed Forces of Ukraine, employees of the security and defense sector, healthcare workers, teachers, and researchers can apply for a preferential mortgage at 3% per annum for up to 20 years with a down payment of 20% of the cost of housing.
Starting from August 1, war veterans, combatants, internally displaced persons (IDPs) and citizens who do not have their own housing larger than the standard area can apply for the eHouse program at a 7% interest rate.
Seven partner banks are integrated into this program: Oschadbank, PrivatBank, Ukrgasbank, Globus Bank, Sky Bank, Ukreximbank and SENS. You can apply for participation in the program using the Diia mobile application.
As of January 17, the volume of loans disbursed under eHousing reached UAH 9.993 billion, with loans issued to 6,654 families. At the same time, 29.4% of apartments were purchased from developers: 1,840 in completed buildings and 111 in those under construction.
“On September 6, Ukrainian Financial Housing Company announced a tender for the purchase of health insurance and health insurance in case of illness.
According to a posting in the Prozorro electronic public procurement system, the expected cost of the services is UAH 1.494 million.
Documents will be accepted until September 21.
“Ukrfinzhytlo is engaged in the state program to provide affordable mortgage lending.
The government and PJSC “Ukrainian Financial Housing Company” (Ukrfinjitlo) have significantly increased the financing of the program “eOsela”, thanks to which the monthly issuance of loans will increase from 0.7-0.8 billion UAH to 2 billion UAH, and a minimum of 10 thousand families will be able to get a preferential mortgage by the end of the year.
“We have seen how great demand for this program is among people. They want to build their lives in Ukraine despite the war. Therefore, the government with Ukrfinzhytl found opportunities and attracted additional funds for the program – both on the open financial market and credit,” the Economy Ministry release on Wednesday quoted First Deputy Prime Minister and Economy Minister Yulia Sviridenko as saying.
The release specifies that “those who were rejected for lack of financing can reapply to Dia.”
As reported, from January to the end of May, due to lack of funds, the implementation of the program “eOsela” was suspended.
“There are funds to finance 10 thousand families until the end of this year. This is about 11.9 billion UAH, as envisaged by the financial plan. Of these already for 2.8 billion UAH issued affordable mortgages from the beginning of 2023”, – specified to the agency “Interfax-Ukraine” in the press service of Ukrfinzhitlo.
As reported, the program of affordable mortgage lending “єOselia” has worked in Ukraine since October 2022. On a preferential mortgage at 3% per annum for up to 20 years with a down payment of 20% of the cost of housing can qualify for contract servicemen of the AFU, security and defense sector workers, medical workers, teachers, researchers. Since its launch in 2022, partner banks have already issued more than UAH 3.4 billion in loans to more than 2.4 thousand participants.
Since August 1, to apply for participation in the program “єOsela” at 7% can be war veterans, combatants, IDPs and citizens who do not have their own housing more than the standard area.
Chairman of the Board of Ukrfinzhitlo Eugene Metzger emphasized that for a mortgage at 7% borrowers can choose an apartment in a house not older than three years at the time of the contract, or under construction. “We focus specifically on the primary real estate market. It is important that “eOselia” can give the economy a positive multiplier effect, and this is possible only thanks to the push of construction”, – says Eugene Metzger.
Six partner banks take part in the program “eOselia”: Oschadbank, Privatbank, Ukrgasbank, Globus Bank, Sky Bank and Ukreximbank. You can apply for participation in the program in the mobile application “Diya”.
At the end of 2022, the government additional capitalized Ukrfinzhytlo by UAH 30 billion through the issue of internal state loan bonds (ISLBs). According to Deputy Prime Minister and Minister of Economy Yulia Sviridenko, such financing is enough to issue 12-15 thousand mortgage loans in 2023.
At the end of April, the Ministry of Economy, as the single shareholder of Ukrfinzhytlo, approved repo operations with these government bonds for up to a year in the amount of UAH 15 billion. Later it was reported that the rate on these transactions could be up to 20% per annum, while the government bonds themselves were issued for up to 5 years at 19.5% per annum.
In addition, on August 3, Ukrfinzhytlo’s supervisory board approved an increase in PrivatBank’s loan secured by the company’s government bonds to UAH 1.5bn.
The Office of the President is planning a large-scale reboot of the Ukrainian Financial Housing Company (UkrFinZhytlo), Deputy Head of the Presidential Office Rostyslav Shurma has said.
“Our goal is to make an accessible and understandable mortgage product with an effective cost of about 5% per annum in hryvnia in three to four months… As for instruments, we are planning a large-scale restart of UkrFinZhytlo as one of the main drivers of mortgage lending,” he said during the 2022 – Time to Lend forum on Friday.
According to Shurma, UkrFinZhytlo should work both directly and in partnership with banks.
Oleksiy Kireev will head UkrFinZhytlo, Shurma added.
“We plan to launch a whole block of programs to support different sectors of the economy in different priority areas in 2022,” the deputy head of the President’s Office said.
As reported, on December 24, the Ministry of Finance terminated the powers of the head and members of UkrFinZhytlo, Viktor Katrenych, Liudmyla Shemelynets and Natalia Marchenko. On January 14, the duties of the head of the board were assigned to the director of the legal department, Dmytro Verbytsky.
The Cabinet of Ministers of Ukraine, which this week injected government domestic loan bonds for UAH 20 billion into the capital of PrJSC Ukrfinzhytlo, proposes to capitalize it in this way for another UAH 30 billion next year, according to the updated draft state budget for 2022 (No. 6000), which was submitted to the Verkhovna Rada on Wednesday.
According to an explanatory note, additional capitalization will allow “to continue the implementation of financial and credit mechanisms for providing citizens with housing with the participation of the Ukrfinzhytlo company, as well as to provide an opportunity to carry out thermal modernization of buildings and premises and thus insure against further increases in energy prices.”
As reported, on November 29, the Ukrainian government issued government domestic loan bonds for UAH 20 billion to pay for an additional issue of shares of PrJSC Ukrfinzhytlo.
The government made a decision on additional capitalization of the company on September 22 this year. The resolution provided for the issue of government bonds with a maturity of up to 15 years and an interest rate of up to 13% per annum.
Thanks to government bonds, the company should direct funds “for the implementation of programs for providing citizens with housing on the terms of mortgage lending and financial leasing.” According to the Ministry of Finance, this will make it possible to issue about 8,000 mortgage loans for the purchase of about 12,000 apartments on a financial lease basis.
