SMI is not advised to raise mortgage rates - news about real estate, Kiev, Kyiv region. Real Estate In Ukraine
State mortgage institution encourages the banks to raise credit mortgage rates above 15% per year.The state Mortgage Institution (SMI) has written 75 partner banks official letter, which urged to resist the temptation to raise rates on hryvnia-denominated mortgage loans. Recommended credit rate, according to this document, is 15% per annum in UAH."SMI will be primarily to refinance mortgage loans extended by partner banks, on the effective lending rates recommended below," the letter reads.This means that the SMI may simply limit the funding of many partner banks. Because the mortgage rates on hryvnia loans most of them already at least 19--25% per year.Not having received loans from SMI, bankers can and do collapse preferential mortgage programs. Although it is possible that many will heed the recommendations. "In conditions of acute shortage of hryvnia resources in the SMI program are very interesting for banks. We were always kept under the recommended loan rates. So, what is our recommendation not afraid", ' he says, for example, the Director of retail crediting Department of Bank "Finance and Credit" Igor Shevchenko.Recall: previously the rate of refinancing of banks State mortgage institution was 9.9%. May 21, it was revised SMI upward due to inflation and now stands at 13.5%.