Sberbank's Ukrainian subsidiary to give affordable housing loans

2011-11-18



The Subsidiary Bank Sberbank of Russia, which is a Ukrainian subsidiary of the major Russian state bank, will provide 20-year loans to participants in the government's affordable housing programme to cover 70% of the cost of flats from November 2011, Interfax has reported. The bank signed the respective cooperation contract with the specialised state financial institution "Youth Housing Construction State Assistance Fund" on 17 October.
The governmental programme ("Dostupnoye Zhilye" (Affordable Housing)) grants state subsidies to citizens who need an improvement in living conditions by enabling them to pay as little as 30% of the purchase price of a flat.
According to Sberbank, they currently cooperate with only one developer for the aforementioned programme – Kievgorstroy (Kyivmiskbud), which is the major Ukrainian housing constructor.
According to the Ukrainian State Statistics Service (Ukrstat), in January-September 2011 4.9 million m² of housing was put into service in Ukraine, which is 6.5% less than in the corresponding period of 2010.