Mortgage Credit Rates In Ukraine Could Fall To 16% By Late 2011, Says Expert

KIEV, Ukraine -- Mortgage credit rates in Ukraine could fall to 16% per annum by late 2011, down from the 18-20% rates seen as of late 2010, according to the first deputy board chairman of Kyiv-based Subsidiary Bank Sberbank of Russia, Alexander Vedyakhin.

"Over the year, mortgage credit rates will fall, but it will be a gradual fall. If we manage to pass the 20% level and reached 18-19%, at the end of the year we could reach 16%," he said at a press conference in Kyiv on January 15.

Vedyakhin also said that the down payment for mortgage credits would fall to 25-30% of the property value, while currently it is some 40-50%.

The expert also said the banks would relax the procedure for issuing mortgage credits to individuals, but that the conditions would not return to pre-crisis terms.

Source: Interfax