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Cabinet of Ministers confirms the State Mortgage Institution acquired $500 million loan

Source : 112 Ukraine

$500 million worth of a foreign loan has been granted by the China National Complete Engineering Corporation
12:23, 26 December 2017

Open source

The State Mortgage Institution of Ukraine will acquire $500 million worth of foreign loan in the form of a credit line at a 4.5% annual interest rate in order to finance the national investment project “Provision of housing on conditions of mortgage or financial leasing”.

A resolution #1008 was adopted by the Cabinet of Ministers of Ukraine on December 18th and published in “The Government Courier” newspaper on December 23rd, Interfax-Ukraine reports.

The explanatory memorandum attached to the document says that earlier the State Mortgage Institution selects the China National Complete Engineering Corporation (CCEC) during the tender. On November 17th an agreement on the implementation of the national investment project was signed, which effectively confirmed the acquisition of the finance.

During its hearings on December 20, the Cabinet adopted a resolution to provide the loan with state guarantees. According to the government’s decision, loan drawing will be carried out in separate tranches in accordance with the confirmed timeline. The loan term is 15 years, which may be prolonged, those conditions to be agreed on separately.

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The credit conditions adopted by the government also provide a 3-year deferral of the credit payments period, as well as principal redemption to be paid in 24 equal payments once every 6 months, and interest payments also once every 6 months.

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According to the explanatory memorandum, the loan will enable the government to build 1.44 million m2 of housing (approximately 30,600 apartments) on conditions of mortgage financing or financial leasing with an annual interest rate not higher than 15.3%. The project prioritizes housing for those who have participated in the anti-terrorist operation, current members of the armed forces and police forces, as well as internally displaced persons.

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