Ukraine needs a systemic housing finance model capable of operating amid large-scale challenges. The war, destruction of housing stock, millions of internally displaced people, and significant pent-up demand for housing make Ukraine’s situation unprecedented. This means there is no ready-made solution that Ukraine can simply adopt from another country. Instead, it needs to develop its own model based on the best international practices.
This was the focus of discussions at the third meeting of the Advisory Council for Cooperation and Support in Developing Reforms and Recommendations on Effective Housing Finance Mechanisms in Ukraine, held on 21 September in Seville, Spain. The meeting took place on the sidelines of the 39th Plenary Meeting of the European Covered Bond Council (ECBC) and brought together representatives of international financial institutions, industry organisations, and housing finance experts.
Ukraine was represented by Vitalii Petruk, Co-Chair of the Advisory Council and Deputy Minister of Economy and Environment of Ukraine, and Ievgen Metsger, Chairman of the Management Board of PrJSC UFHC.
One of the key areas of this work is the search for a model that can bring together different elements of housing finance into a coherent system — from government programmes and mortgage lending to attracting long-term capital and engaging with capital markets.
To support this work, the UFHC team analysed the experience of countries that, at different stages of their development, established specialised institutions and centralised housing finance mechanisms. The findings were presented during the meeting by Oleg Zhuravlov, Deputy Chairman of the Management Board of PrJSC UFHC.
Members of the Advisory Council reviewed approaches used in Japan, France, South Korea, Poland, Slovakia, Bulgaria, and Canada. Despite differences in the architecture of these systems, specialised institutions in many of these countries serve a common purpose: they help coordinate the market, establish common standards, develop high-quality mortgage assets, and provide access to long-term financing. For Ukraine, the key task is to determine which elements of international experience can work effectively in the Ukrainian context.
Against this background, the Advisory Council continues to work together with the Ukrainian side on the potential architecture of a National Housing Finance Platform, including its functions, role within the broader system, and strategic priorities. Such a platform could become an instrument for coordinating key market participants and provide a foundation for a more sustainable housing finance system in Ukraine.
A separate part of the discussion in Seville focused on the instruments needed to ensure the long-term sustainability of such a system, including securitisation, covered bonds, and other capital-raising mechanisms. Participants also discussed opportunities for mortgage financing of modular housing and relevant international experience in this area.
We will share more details on these areas of the Advisory Council’s work tomorrow.
