At its meeting on 26 June, the Financial Stability Council (FSC) focused on reviewing strategic documents developed in accordance with Ukraine’s commitments to international partners, primarily the IMF.
The FSC members approved the Mortgage Lending Development Strategy aimed at developing market mechanisms to ensure overall economic and demographic growth during the war and post-war recovery and reconstruction.
The Mortgage Lending Development Strategy has been developed in accordance with the concept approved by the FSC and agreed with the IMF, and provides for:
- implementing the provisions of Directive 2014/17/EU on mortgage credit into Ukrainian legislation
- ensuring the availability of mortgage insurance against war risks
- introducing European standards for property appraisal and improving information exchange, in particular through the creation of an open database of real estate prices
- improving laws and regulations to better regulate construction processes in order to reduce the risks of unfinished construction and increase the transparency of unfinished real estate sales
- updating the strategy of Ukrfinzhytlo, the operator of the state program eOselia, and improving the conditions of state mortgage support
- determining the terms of covered-bond issuance and securitization.
The FSC also approved an update to the Strategy of Ukrainian Financial Sector Development, which refreshed the analysis of the financial sector and the list of indicators and their target values, and added measures to reform the compulsory state social insurance system.
The approved documents – including the updated Strategy of Ukrainian Financial Sector Development and the Mortgage Lending Development Strategy – will be published separately following formal approval.
In addition, the FSC reviewed the Overview of Systemic Risks, according to which the full-scale war and increased geopolitical uncertainty remain the key risks. At the same time, economic recovery continues, and risks to the financial sector are moderate. The need for partner support remains, in particular, through the use of immobilized russian assets.
The meeting was attended by the co-chairs and members of the Financial Stability Council: NBU Governor Andriy Pyshnyy, Minister of Finance of Ukraine Serhii Marchenko, NBU First Deputy Governor Kateryna Rozhkova, First Vice Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko, NBU Deputy Governor Dmytro Oliinyk, Deputy Minister of Finance of Ukraine for European Integration Yuriy Draganchuk, Managing Director of the Deposit Guarantee Fund Olga Bilay, and other top officials of institutions comprising the FSC.
The FSC was established by presidential decree in March 2015 and provides a forum for the professional discussion of systemic risks to financial stability of the state.