OREANDA-NEWS.May 05, 2012. The priority for implementing the program of reduction in price mortgages for citizens will be the primary market, including residential uncompleted construction sites with a high degree of readiness, which funds of citizens has already been invested for. Attracting additional funds by state support will allow completing their building, to remove the social tensions around these sites. The Minister of Regional Development, Construction and Housing and Communal Services of Ukraine Anatoliy Blyznyuk said this during a briefing at the Cabinet of Ministers of Ukraine.

"To the housing long-term constructions that have appeared as from the global financial crisis, a lot of money of citizens have been invested. The introduction of cheap mortgages and attraction of its funds for the completion of such facilities will solve the housing problem not only for members of the new mortgage Program, but also for hundreds of investors to their own homes. Elimination of social tension - another important result of the practical implementation of social initiatives of the President of Ukraine," said Anatoliy Blyznyuk.

As the head of Ministry of Regional Development has informed, housing construction sites will be selected and controlled by local authorities and their list will be approving by the Interagency Commission under Ministry of Regional Development. The program will involve banks of I and II groups according to the criteria of the National Bank. This is 36 largest institutions with the most advanced network of local branches.

Overall, the general parameters of the new mortgage programs look like this. The first payment of a borrower is not more than 25% of the loan, the maximum rate at the time of loan - 16% per annum, of which the state will compensate 13%, that is, in fact, a citizen will pay only 3% per annum. The compensation of part of interest rate on the loan is making by local authorities into personal accounts through the Treasury.

Loan term - 15 years, the term of partial compensation - 10 years. Normative living space - 40 square meters per person or per family of two persons, plus 18 square meters for each other family member, but not more than 58 square meters. Normative cost of 1 sq. meter of living space is set to: Kyiv - 7 thousand UAH, Kyiv region, regional centers and Sevastopol and Simferopol - 5 thousand UAH and other settlements - up to 4 thousand. For towns that are located in 15-kilometer zone from Kyiv, Sevastopol, Simferopol and regional centers, the estimated cost of housing can be increased by 10 percent. It is allowed exceed normative living space and the estimated cost of housing not more than 25 percent.

The basic requirements for potential participants - need to improve housing conditions and paying capacity. It is set upper and lower limits of solvency for the citizens of the participating in the Programme. The upper limit - the maximum average annual family income of three persons 400 thousand UAH (from 760 thousand UAH in Kyiv to 355 ths. in Ternopil region). Lower limit - average minimum annual income for a family of three persons in Ukraine 55 thousand UAH. In the period of partial compensation an apartment must be primary residence of borrower. A person has no right to dispose of or to lease apartments throughout the state receiving compensation.

To participate in the program it is need apply to one of the banks from the list and submit the minimum necessary set of documents. Then the bank examines every case, considering the possibility issuance of credit and together with relevant departments of regional state administrations works out getting a citizen of partial compensation for this loan. Then one chooses a particular apartment in a concrete building (selected by the Interagency Commission of Ministry of Regional Development upon the recommendations of local administrations) and signs two contracts: one for the purchase of flats (participant of the program, bank, builder), second - for payment of compensation (participant, bank, local administration).