Money is short: banks sharply reduced the issuance of loans to Ukrainians.

The volumes of issuing preferential mortgage loans under the 'eOselya' program in Ukraine significantly decreased in the second half of 2024, reports the National Bank of Ukraine.

It was noted that this happened due to changes in the program conditions, which were more favorable for developers, as well as due to a lack of funds in the state company 'Ukrfinzhytlo', which is responsible for implementing the program.

According to the National Bank, from January to November 2024, the volume of issued mortgages exceeded the indicators of the previous year by more than one and a half times. However, after the peak values in the spring of 2024, there was a significant decline of about one third starting from July. Mortgage loans for purchasing new buildings remain weak, while the volumes of loans issued in the primary market are growing slowly.

The National Bank believes that in order to activate the mortgage market, it is necessary to revise the mechanisms of state support. Participants in the 'eOselya' program need more market-based reward conditions, as the existing low margin is insufficient to motivate banks to participate.

The 'eOselya' program is hindering the development of the market mortgage in Ukraine.