Ukraine has taken another step towards the development of more affordable mortgages. The Verkhovna Rada has approved a draft law that will allow banks to return funds to circulation faster and issue more housing loans, writes Finance.ua, reports 3m2.<\/p>\n
Thus, on June 30, the Verkhovna Rada of Ukraine supported in the first reading the draft law \u201cOn Securitization and Covered Bonds\u201d (No. 15172). The document is to create new mechanisms for attracting long-term financing for banks, which, according to the authors, will contribute to the development of mortgage lending, cheaper loans and attracting investments.<\/p>\n
What the draft law provides<\/p>\n
According to the parliament, the draft law establishes the legal framework for the securitization of financial assets and the issuance of covered bonds. Such instruments will allow banks to return funds invested in long-term loans faster and direct them to new lending. The document also provides for the creation of specialized platforms for securitization transactions, defines requirements for assets that will be used as collateral, regulates the circulation of credit notes, and establishes the rights and obligations of market participants.<\/p>\n
Particular attention is paid to investor protection. The draft law strengthens the requirements for information disclosure and introduces mechanisms for separating securitized assets, which should increase the reliability of such financial instruments. The document was developed taking into account the requirements of European legislation and EU practices.<\/p>\n
How this may affect mortgages<\/p>\n
The Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Getmantsev, reported that the draft law was supported by 255 people’s deputies. According to him, currently, banks, when issuing mortgage loans, are actually \u201cfreezing\u201d their own funds for decades. The proposed mechanism will allow these resources to be returned to circulation more quickly and used to issue new loans. Getmantsev noted that this model has long been used in the countries of the European Union.<\/p>\n
According to forecasts, within the first five years after the law comes into force, the market can attract over UAH 150 billion in new financing, of which about UAH 100 billion can be directed specifically to residential mortgage lending.<\/p>\n
According to the authors of the bill, this should be another step towards the development of affordable mortgages, the reconstruction of Ukraine, and the further integration of the Ukrainian financial market into the European space.<\/p>\n
What will it bring<\/p>\n
The adoption of the bill creates the prerequisites for:<\/p>\n
development of the structured financing market;
\nattraction of additional resources by banks and financial institutions;
\nincreasing the liquidity of the financial system;
\nemergence of new investment instruments;
\ndevelopment of long-term lending, in particular mortgage lending.<\/p>\n
\u201cFor Ukraine, this is not just another law. This is a step towards the formation of a modern capital market, which will allow more effectively attracting private capital to the development of the economy and the future reconstruction of the country. The National Securities and Stock Market Commission consistently supports the implementation of legislation necessary for Ukraine’s integration into the European financial space and the creation of a competitive capital market,” the NSSMC commented on the decision.<\/p>\n
After approval in the first reading, the draft law should be finalized taking into account the proposals of people’s deputies and prepared for consideration in the second reading.<\/p>","protected":false},"excerpt":{"rendered":"
Ukraine has taken another step towards the development of more affordable mortgages. The Verkhovna Rada has approved a draft law that will allow banks to return funds to circulation faster and issue more housing loans, writes Finance.ua, reports 3m2. Thus, on June 30, the Verkhovna Rada of Ukraine supported in the first reading the draft […]<\/p>\n","protected":false},"author":1,"featured_media":11348,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,15],"tags":[],"class_list":["post-11347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-actually","category-review"],"_links":{"self":[{"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/posts\/11347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/comments?post=11347"}],"version-history":[{"count":2,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/posts\/11347\/revisions"}],"predecessor-version":[{"id":11386,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/posts\/11347\/revisions\/11386"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/media\/11348"}],"wp:attachment":[{"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/media?parent=11347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/categories?post=11347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/tags?post=11347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}