National Bank of Ukraine reports Financial Stability Council approval of Mortgage Lending Development Strategy and updated financial sector strategy

Ukraine’s Financial Stability Council approved a Mortgage Lending Development Strategy and an update to the Strategy of Ukrainian Financial Sector Development, following a review of strategic documents prepared under Ukraine’s commitments to international partners, primarily the International Monetary Fund. The mortgage strategy sets out steps to implement Directive 2014/17/EU on mortgage credit in Ukrainian legislation, enable mortgage insurance against war risks, introduce European standards for property appraisal and improve information exchange including an open database of real estate prices, strengthen regulation of construction processes to reduce unfinished construction risks and increase transparency in unfinished real estate sales, update the strategy of Ukrfinzhytlo as operator of the state eOselia programme and improve state mortgage support, and define the terms for covered-bond issuance and securitisation. The updated financial sector strategy refreshes sector analysis and the indicator set and target values, and adds measures to reform the compulsory state social insurance system; the Council also reviewed systemic risk analysis identifying the full-scale war and geopolitical uncertainty as key risks while assessing risks to the financial sector as moderate. The approved documents will be published separately following formal approval.