STATE FUND CELEBRATES 31 YEARS: THE INSTITUTIONAL AND FINANCIAL STABILITY IS ENSURED
Today, July 4, marks the 31st anniversary of the State Fund for Support of Youth Housing Construction
Over the past three decades, 42,380 Ukrainian families have been provided with their own housing under all State Fund programs.
But these figures seem to be from another, previous life... Due to circumstances beyond our control, we have to celebrate this day in the context of Russia's large-scale military aggression against Ukraine. The war has influenced a reassessment of everyone's performance and made truly valuable things key. Of course, this has also affected the work of the State Fund. Some of our colleagues, both current and former, are bringing the Victory closer in the ranks of the Armed Forces of Ukraine. Those who work in the rear are making efforts for themselves and for the heroes in uniform, helping to provide housing for Ukrainians in need of a roof over their heads.
Despite the difficult circumstances of martial law, the State Fund has maintained not only financial but also institutional stability – we remain an effective instrument of the state housing policy and at the same time solve the problems of structural reorganization and technical modernization. We are dealing with issues that were not addressed in the pre-war period. I would like to point out that the sustainable development of the State Fund is the result of timely management decisions made at the first stage of large-scale military aggression.
For reasons that need no explanation, this year, as well as last year, we do not count on financing housing programs from the state budget of Ukraine. But the volume of Ukrainians' need for housing is only growing rapidly. Therefore, we have no choice but to look for sources of funds. We have some results on this path.
We have completed the provision of mortgage loans under the first stage of the joint Ukrainian-German program "Housing for Internally Displaced Persons", which is being implemented at the expense of the German government through KfW Bank. The international audit of the State Fund conducted in 2023 demonstrated the high professional level and complete transparency of the State Fund program. International partners suggest that the Ukrainian government extend the program for at least this year and next. So we hope to see new stages of independent computerized selection of recipients of preferential loans at 3 percent per annum in a few months. It is important that the grant funds will remain in the Ukrainian economy and will work for the benefit of our people for many years to come.
For five years, at all levels of government, we have been advocating for Ukraine's accession to the Council of Europe Development Bank, a unique institution with vast experience in implementing social programs in European countries that have suffered the disasters of war. A few weeks ago, an important step was taken: our country became the 43rd member of the Bank. This opens the way to attracting cheap investment and grant resources, including for housing programs.
Funding for housing programs from local budgets is gradually being restored. This is a manifestation of trust in the institutional capacity of the State Fund and, at the same time, an indicator of the quality of work of the State Fund's regional offices. We intensify this work where there is the will of local authorities, understanding of the importance of solving the housing problem for communities and synergy with our regional offices.
Overall, in 2022, against the backdrop of extremely limited funding, a quarter of the mortgage market in Ukraine, including bank mortgages, was accounted for by the State Fund loan portfolio. Already in the first half of this year, every third loan in the country was issued by regional branches of the State Fund. We will maintain and develop this result.
But the main point is that all of us together, the entire Ukrainian people, must win the great Victory in unity. Then we will celebrate the next anniversary of the State Fund in a free, peaceful, prosperous country of happy people.
Let us bring Victory closer every day!
Sincerely yours,
Serhii Komnatnyi,
Chairman of the Board
State Fund for Support of Youth Housing Construction