The Ukraine National Commission on Securities and Stock Market (NSSMC) outlined a proposed housing construction financing model centred on mortgage securitization, in remarks by its Chair Ruslan Magomedov at a Ministry of Development conference supported by the World Bank. The model frames securitization as the mechanism to convert banks’ mortgage loans into market-based instruments that can be sold to investors, supporting greater bank lending to individuals. The approach combines construction financing mechanisms and instruments such as CII, target bonds, CFF and derivative contracts, mortgage lending to home buyers regulated by the National Bank of Ukraine, and securitization to refinance mortgage portfolios, distribute risk and attract investors. The NSSMC pointed to steps already taken, including adoption of Ukraine’s Law on Rating, approval of a Concept for introducing a legislative framework for covered bonds and securitization, and development of a dedicated draft law with support from the World Bank and the European Bank for Reconstruction and Development. The Commission also linked securitization to expanding mortgage tools for citizens including internally displaced persons, veterans and large families. Next steps highlighted were rapid adoption of the required legislation, synchronisation of tax and regulatory norms, and closer cooperation with banks to launch a construction financing market.

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