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Monday, December 25, 2006

A National Bank of Ukraine is prepared for the prices collapse on real estate market

The National Bank of Ukraine (NBU) was prepared by the project of "Order of currency operations, related to the export and import of financial capital" which foresees a temporary moratorium on personal crediting in foreign currency.

The promise of National Bank Head, Vladimir Stel'makha can play on a hand that, who wants to improve the housings conditions. A rising price on residential real estate already resulted in that the half of all of transactions at the market of habitation is carried out by mortgage loans. From Ukrainian national mortgage association (UNIA), up to 85% mortgage oans are given out exactly in currency. If national Bank will succeed to forbid the currency crediting, on the estimations of experts, the more than half of potential borrowers will give up services of banks, not wishing to pay for the hryvna credit of 17--18% annual. This process, as experts consider, can be outpoured in falling of demand at the market of the real estate to 40%.