The 'Affordable Housing' Race

PM Tymoshenko: I promised that every family that is employed or has an income will be entitled, via a government mortgage agency, to receive a loan, for a period of 25 to 30 years, for the purchase of a home; and what's more, without a down payment and at an annual interest rate of 4 to 6 percent.

Interviewer: I would like you to clarify, what banks will agree to an interest rate of 4 to 6 percent?

PM Tymoshenko: The thing is, it's not the banks that will be at work here. The rate of 4 to 6 percent will be the product of the government mortgage agency. It's the kind of agency that taps the cheapest of money — and there are such mechanisms — and then, through refinancing commercial banks and through special rules that do not allow the banks to ratchet up interest rates — we will give such loans to people. Make no mistake: Our task is to make housing so that people can buy it, rather than watch upscale condos being built and passively observe the other guy having a beautiful life.

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News & Politics

Tags:

• Tymoshenko
• Ukraine
• housing
• mortgage