OREANDA-NEWS. June 19, 2012. This year the state began an ambitious experiment in reforming the life support systems. This was announced by the head of the Ministry of Regional Development, Construction and Housing and Communal Services of Ukraine Anatoliy Blyznyuk during a meeting in Donetsk Regional State Administration, dedicated to the implementation of social initiatives of the President "Affordable Housing" and preparing for winter housing.

According to the Minister, development and modernization of housing and communal services require huge investments. Any budgetary subsidies at all levels were not allowed to provide the investment needs of the industry and housing. So this year, the Ministry proposes a simple and effective form of support for municipal infrastructure - cheap low cost loans.

"This initiative was included into the National Action Plan for 2012 as part of economic reforms. The opposite government funding will allow to direct funds to the most efficient energy saving technologies. An old dependency scheme is being eliminated step by step - "Give the money - we spend!". There is a key industry need for cost-effectiveness of projects, - said Anatoliy Blyznyuk. - We have studied the international experience and found that these types of financing have become the basis for housing and utilities reform. There is a public infrastructure projects that are never repaid, such as trunk water mains. But the high price of gas has turned the majority of projects in the field of heat supply to pay off, and effective. "

As the head of the Ministry the Ministry of Regional Development, Construction and Housing and Communal Services said 40 million UAH is provided in 2012 by the budget program. The Ministry plans to show all the local authorities an effective example. The Ministry has already been received numerous requests from mayors of cities for the implementation of modernization projects. First and foremost is the establishment of ITP and other system projects in heating, when the problems of the city are solved, not a single house.

"If this year's experience will be successful, we will be offering next year to increase funding for this program. And further this stock principle will increase the amount of new loans due to the return of old ones. Systems of budgetary loans were used by many countries in economic transition. This approach provided the investment industry's need for as long as the sphere of life support systems is not interested by banks and it does not begin to operate full-fledged market-based mechanisms", - Anatoliy Blyznyuk said.

Soft loan in accordance with the approved Government Order will be granted to legal entities, including condominiums associations, up to 10 years with the possibility of early repayment of obligations. The amount of payment of the borrower for the use of subsidized loan is 3 percent per annum. Vacation credit - 1 year.