June 20th 2017

PrivatBank and State Mortgage Institution to develop affordable housing lending in Ukraine

PrivatBank has signed a memorandum with the State Mortgage Institution (SMI) on cooperation in the field of mortgage lending and housing leasing, which will enable the bank to intensify implementation of affordable mortgage programs. According to Andrii Kovtun, PrivatBank Head of Retail Lending, cooperation of Ukraine’s largest bank with the SMI makes it possible to introduce modern housing programs for Ukrainians, primarily servicemen and women, due to combining the bank's advanced technologies and opportunities for stimulation of affordable mortgages by the State.

“Today, we are striving together to restore mortgage lending in the country as soon as possible using global practices, new opportunities and the bank’s technologies” – said Andrii Kovtun. – “Active fundraising with the help of the SMI and the State will help to create a simple and widely available leasing mechanism for financing construction of new accommodation for citizens, especially for those who defend our country and need better housing conditions for their families."

In particular, the memorandum of the bank and the SMI implies that the bank will be able to act both as a primary mortgage lender providing long-term mortgage loans and as an agent authorized by the SMI, providing housing for citizens. For its part, the State Mortgage Institution will facilitate the attraction of financing by issuing SMI securities and placing them on domestic and foreign financial markets, including securities with additional collateral in the form of state guarantees and joint programs of mortgage lending and housing leasing.

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