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Ukraine’s Cabinet on Oct. 23 passed the Resolution "On the reallocation of certain expenses and the provision of loans from the state budget allocated to the Ministry of Regional Development, Construction and Housing in 2013", the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
The measure provides for increasing the volume of loans from the state budget for the program of concessional lending for house purchases.
Funding for the program that provides preferential long-term government loans to young families and single young people was increased by 17 million UAH. The 2013 state budget for the program amounted to 80 million UAH.
Some 36.618,000 UAH in additional funding has been earmarked for the Program "State concessional lending to individual farmers builders for construction (reconstruction) and the acquisition of property." The program was originally endowed with 47 million UAH.
Experts say funding from state and local budgets for various housing programs amounted to 748 million UAH.
The government order on cost redistribution and loan provision was made to improve the efficiency of the use of budget funds allocated for the implementation of government housing programs. This will further facilitate issuance of preferential loans to Ukrainians, especially to people who live and work in rural areas.
Government from 2010 to 2012 helped more than 6,000 Ukrainian families to aquire their own housing .
"This year the government set a target to support another 6,700 families. At the budgeted adequate funding," Deputy Prime Minister Oleksandr Vilkul said.
Experts say public investment aimed at cheaper mortgages contributes to the development of construction-related industries. It also creates new jobs and increase revenue. For one hryvnia of credit an additional 1.5-2 hryvnia is provided at the expense of local budgets, other means of financing and savings.