After the war – your own home: Ukraine creates a mortgage megaproject with investors
18 April 2025 12:11
In 2025, the state-owned company Ukrfinzhytlo, which implements the eOselya mortgage program, plans to significantly expand its operations. To this end, the company is preparing for a large-scale recapitalization and is negotiating with international financial institutions to attract external financing, "Komersant Ukrainian" reports, citing information on the company’s official website.
This approach will significantly increase the number of mortgage loans issued to Ukrainians, primarily for the military, doctors, teachers, scientists, and young families.
Why and for whom is it important?
The issue of affordable housing has become critically important during the war. Many Ukrainians were forced to leave their homes, and the country’s housing stock suffered huge losses. At the same time, the economy needs incentives that could not only improve the living standards of citizens but also launch related industries, such as construction, building materials production, and the banking sector. That is why the eHousing program is seen as one of the key tools of the government to support the population and stimulate the country’s recovery.
“eHouse” program: a brief overview of what you should know
“eHouse” is a state mortgage program launched in 2022. It allows certain categories of citizens to receive housing loans at preferential rates of 3% to 7% per annum. The program is open to military personnel, law enforcement officers, doctors, teachers, scientists, and citizens under the age of 35 or with children who do not yet have their own home. Thanks to this program, thousands of families have already been able to purchase housing on favorable terms.
Key sources of funding
In December 2024, the Cabinet of Ministers of Ukraine decided to recapitalize Ukrfinzhytl by UAH 20 billion. This was done through the issuance of domestic government bonds, which was another step by the government to support the mortgage initiative.
These funds allowed the company to finance new mortgage loans under the eHouse program and support the deals already started. However, Ukrfinzitla understands that external sources of funding are also needed to ensure the long-term stability of the program, and this is where the company is currently focusing its attention.
Attracting international financing
The company’s management is actively negotiating with a number of international financial institutions, including the World Bank, the International Finance Corporation (IFC) and potentially the European Investment Bank (EIB). These institutions are already familiar with the terms of the eHouse program and are considering financial participation in its implementation.
According to Yevhen Metzger, Chairman of the Board of Ukrfinzhytlo, international partners are showing interest and highly appreciate the structure of the program. If the agreement is reached, it will allow the program to be taken to a new level – from the current tens of thousands of borrowers to potentially hundreds of thousands.
Future plans: Eurobonds and securitization
In addition to additional capitalization and international investments, Ukrfinzhitlo is considering other financial instruments. After the end of martial law, the company plans to issue mortgage Eurobonds, i.e. bonds secured by the portfolio of loans issued. This will allow the company to raise funding on the international capital markets.
One of the options is asset securitization, i.e. the sale of a pool of mortgages as an investment instrument. This practice is widespread in the US and the EU, and could be an effective mechanism for the long-term functioning of mortgages in Ukraine.
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