One of the key topics discussed at the third meeting of the Advisory Council for Cooperation and Assistance in Developing Reforms and Recommendations on Effective Housing Finance Mechanisms in Ukraine was the development of the legal and regulatory framework for securitisation and covered bonds.
The relevant draft law was adopted by the Verkhovna Rada of Ukraine on 16 September 2026. The next step is to develop the secondary legislation and regulatory mechanisms required for its practical implementation.
“It is important to ensure consistency in the approaches of different regulators, compliance with European standards, while also taking into account the specific features of the Ukrainian market,” said Richard Kemmish, an independent covered bond and securitisation consultant and member of the Advisory Council.
Introducing these mechanisms is expected to create additional opportunities to attract capital into mortgage lending and support the development of Ukraine’s secondary mortgage market.
“We are already working on technical assistance for regulators that is needed for the practical implementation of the new legislation. This includes the development of secondary legislation and work on such important issues as repo mechanisms, risk requirements and liquidity requirements,” added Rada Tomova, Associate Director, Capital and Financial Markets Development at the European Bank for Reconstruction and Development (EBRD).
Participants also discussed establishing a specialised working subgroup within the Advisory Council to provide technical support to the Government in developing secondary legislation for the implementation of securitisation and covered bonds. Ukrainian and international experts are expected to contribute to this work.
“Ukraine already has the necessary foundation to launch its first securitisation of mortgage assets — a mortgage portfolio built by UFHC, high-quality assets and the required legislative framework. The next step should be the practical implementation of this mechanism, including through a pilot project involving UFHC, which could lay the foundation for the development of the secondary mortgage market and the mobilisation of long-term private capital,” said Iaroslava Avramenko, Deputy Chairman of the Management Board of PrJSC Ukrainian Financial Housing Company (UFHC).
Another topic discussed during the meeting was expanding the range of housing assets eligible for mortgage financing. Our next article will focus on modular housing and the prospects for mortgage financing of such properties in Ukraine.
