Confederation of builders of Ukraine expects lower mortgage rates to 10% by the end of 2020
In Ukraine it is possible to reduce mortgage rates to 10% from the current 20 to 24 percent, if the national Bank will carry out its plans to reduce the discount rate to 7% by the end of 2020. This was announced by the President of the Confederation of builders of Ukraine Lev Partskhaladze, commenting on the situation on the Ukrainian real estate market, the air ObozTV.
According to estimates by Lev Partskhaladze, to meet the demand of about 6 million people in Ukraine need to build 2 billion square meters of housing.
"Salvation is mortgage lending. But we got a mortgage at 20-24% per annum, it is almost impossible. Who takes, pushes herself into debt," - he stressed. "So the first thing you need is to reduce the discount rate of the national Bank. It's already happened, promise to 7-8% lower. Accordingly, the mortgage can be in the region of 10%. It's not an ideal situation as in some European countries, but this is enough for people to be able to do it."
Leo Partskhaladze believes that after a decline in mortgage rates in Ukraine to 10% "30-40% increase in housing construction".
we will Remind, on March 4, 2020 will be the First mortgage forum "mortgage - a tool for rapid development of the economy", which is scheduled signing of the Memorandum between the Cabinet of Ministers of Ukraine, the National Bank of Ukraine and the Confederation of builders of Ukraine, which will start the availability of mortgage credit this year.
As you know, the construction industry is a major consumer of steel and its "health" depends largely on the industrial production growth in General and steel production in particular.
background:
the Confederation of builders of Ukraine (CCU), the largest trade Association representing the interests of the construction community. Member of the Federation of European construction industry (FIEC), which consists of 32 European national federations-members from 28 countries.