Only one out of six IDP candidates was able to get a home loan
22 July 2024 15:55
As part of the “Housing for Internally Displaced Persons” project, which was implemented in Ukraine with grant funds from the German government, only every sixth applicant from among internally displaced persons was able to issue a preferential loan. This is reported by the Accounting Chamber, "Komersant Ukrainian" informs.
Thus, the Accounting Chamber published a Report on the results of an international coordinated audit of the effectiveness of the project “Residential premises for internally displaced persons: facilitating the integration of families at a new place of residence with the support of the Federal Republic of Germany under martial law”. It has been implemented in Ukraine since 2021.
As part of the audit, the system of providing preferential mortgage loans with the funds of a grant from Germany to provide IDPs with their own housing was analyzed.
“In general, for the years 2021-2023, the German government allocated €42.5 million for the project. With these funds, it was planned to provide preferential loans for housing to 1,300 families. The terms of the mortgage, in particular: 30 years at 3% per annum.”
- says the message.
However, as the auditors established, due to shortcomings in the selection of candidates, only 669 families (55.8% of the planned number) were able to receive a loan from the selected 4,230 winners.
“The peculiarity of the project is the existence of a revolving fund, where loan contributions from borrowers were directed in order to further lend to new participants. However, these funds began to be used only in 2023. As a result, 24 borrowers lost the opportunity to purchase their own housing.
Taking into account these and other identified shortcomings, the Accounting Chamber provided audit objects with recommendations for their elimination.”
- clarified in Rakhunkova.
War and reconstruction
As of May 2023, KSE Institute has calculated $54 billion in Ukraine. losses to the housing stock of Ukraine. Of these, $46 billion was caused by the destruction of apartment buildings. In total, there are more than 18,000 such houses. 144,000 private houses were also damaged. The total area of damaged or destroyed objects is 87 million square meters. m. This is 8.6% of the total area of the housing stock of Ukraine. In total, Russia caused damage to Ukraine’s infrastructure in the amount of $153 billion.
As Deputy Prime Minister Iryna Vereshchuk reported, as of April 2023, 2.5 million Ukrainians had their homes damaged due to the Russian invasion. 170,000 people whose homes were completely destroyed were registered. 200,000 Ukrainians currently live in compact housing, and 5,000 of them live in modular towns.
The state compensation program for destroyed housing applies to owners of housing destroyed as a result of hostilities after February 24, 2022. The state compensates such people for the purchase of a new or repair of an old home. However, the government has recently set a maximum area of destroyed housing for which compensation will be paid.
