Financial sector news

The Cabinet of Ministers of Ukraine has decided to significantly expand the financial capabilities of the state mortgage program “eOselya.” The authorized capital of Ukrfinzhytlo, the company that administers this program, will be increased by UAH 30 billion through the issuance of new domestic government bonds (OVDP). This is stated in Government Resolution No. 1640 of December 12, published on the official government portal.

Currently, the company's capital is slightly over 70 billion hryvnia. According to the government's decision, the recapitalization should be completed by the end of this year. The state does not allocate “live” money from the budget directly, but uses the instrument of exchanging shares of the additional issue of Ukrfinzhytlo for government bonds.

The portfolio of new securities will be structured as follows:

UAH 7 billion — maturity of 4 years, yield of 14.1% per annum, coupon period of 6 months;

UAH 10 billion — maturity of 5 years, yield of 12.9% per annum, coupon period of 6 months;

UAH 13 billion — maturity of 7 years, yield of 11.0% per annum, coupon period of 6 months.

"The Ministry of Economy, Environment and Agriculture of Ukraine will acquire additional shares of Ukrfinzhytlo in exchange for bonds, which will increase the company's authorized capital and ensure further financing of the eOselya program. The recapitalization will enable approximately 18,000 Ukrainian families to obtain housing under the preferential mortgage program," according to the press service of PJSC Ukrainian Financial Housing Company.