The Verkhovna Rada has changed the mechanism to support the construction industry. Now, the National Bank is discharged to refinance loans to property developers and buy mortgage-backed bonds. Difference between the contract and the market rate on the loan will soon repay the state budget, writes Kommersant-Ukraina in the article, builders have replaced the roof.
Under the new law, the National Bank will no longer have to refinance bank loans to developers and banks to compensate for the difference between fixed and market rates. Now, these costs will take on the state budget.
National Bank has also released and the need to redeem the bonds of the State Mortgage Institution. Among other things, the parliament extended the moratorium on the cancellation of contracts between an investor and developer in case of delay in commissioning - from 1 July 2010 until July next.
At the same time, writes Kommersant-Ukraina, a senior source at the Ministry of Construction and Regional Development said that they would plan to budget funds for compensation rates immediately after it is signed by the president.
"We will begin payments after signing the bill the president. This year's budget provides for 390 million UAH for the construction industry development. We hope that we will increase this figure to at least 500 million UAH", - he said.
However, market participants supported the new law. "Market-based rates in UAH is 17-18%, but given the fact that housing prices have fallen, long-term investments with rates almost impossible", - the head of the board of directors of Ukrainian Construction Association Lion Partskhaladze.
Recall that the Verkhovna Rada yesterday approved the second reading of Bill # 6687 which amends the law to prevent the impact of the global financial crisis on the construction industry and housing. Parliament a year - until January 1, 2013 - extended the possibility of developers involved in the construction or completion of housing facilities with a high degree of readiness to receive loans.
As the newspaper notes, in Minregionstroy want to provide for this purpose in the budget in 2011 almost 500 million UAH.