The state program “eOsel” occupies a dominant position on the mortgage market, which inhibits the development of market products. About this reported in the December report of the NBU.
Due to the preferential conditions of the program, it is difficult for banks to offer competitive market loans, and clients are not interested in more expensive options. As a result, almost all mortgage loans in the country are issued through “eOselya”.
“Mortgage lending continues only within eOseli, loans outside the unit program”, – the message says.
More than 90% of mortgage loans are provided by three state banks – Oschadbank, PrivatBank and Ukrgasbank. At the same time, among the participants of the program there are banks that did not issue a single loan. According to the NBU, “eOselya” discourages customers from market products, and banks – from developing new offers without subsidies.
Adding to the complexity is that buyers perceive the primary market as dangerous due to its lack of transparency and risk. In the first half of the year, only 5% of deals were concluded with a mortgage, and in the second, this indicator decreased to 4%. Half of the loans since the beginning of the year were issued for housing in Kyiv and the region.
The NBU emphasizes the need to reform state support programs, in particular “eOseli”, to promote the development of market mechanisms. The design of the programs should focus only on those who really need help, in particular through the adaptation of rates and strategies to the real needs of the market.
