IFC, a member of the World Bank Group, has presented the results of its study on mortgage legislation and the use of mortgage notes in Ukraine to the government and banking sector. The study identifies the amendments for creating an enabling legal environment for using mortgage notes. It also highlights the operational and financial benefits of mortgage notes.
Mortgage notes are effective instruments for transferring mortgage loans from one entity to another in international financial markets. They have helped develop the mortgage market in many countries, providing an efficient method for facilitating the refinancing of mortgage portfolios. Following the successful implementation of a mortgage note in Russia, IFC is now applying its experience in Ukraine to help develop the country's housing finance sector.
"IFC's findings are very valuable to the industry. We look forward to the proposed amendments being introduced and hope that Ukrainian banks will use the mortgage note in the future," said Oleksiy Pylypets, Executive Director of the Ukrainian National Mortgage Association.
"Developing the infrastructure for implementing the mortgage note in Ukraine will help build a sustainable housing finance system. Using a mortgage note to transfer financial obligations will enable banks to secure financial resources more effectively," said Elena Klepikova, IFC Senior Operations Manager for Housing Finance in Eastern Europe and Central Asia.
The study was conducted by the IFC Mortgage Market Development Project in Ukraine. The presentation was followed by discussions with representatives from commercial banks and government institutions involved in the regulation of the mortgage market.
Source: IFC
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