By KYIV. Jan 4 (Interfax-Ukraine) – The Cabinet of Ministers has approved the minimum size of the guarantee share of the construction of facilities built in the future – 10% of the total area for Kyiv, Dnipro, Lviv, Odesa and Kharkiv, 5% for all other cities and towns of the country, the press service of the government has reported.
The decision in pursuance of the law of Ukraine on guaranteeing real rights to real estate objects that will be built in the future was approved at a meeting of the Cabinet of Ministers on Tuesday, January 3, 2023.
According to the legislation, the guarantee share will be encumbered by the state, that is, it will actually be pledged until the complete launch of the object.
"A balanced and carefully weighted decision has been made, which, firstly, preserves the existing incentives for the construction industry, which is very important, given the needs of the country’s recovery. Secondly, it will motivate the developer to complete construction projects to remove the burden from him and make a profit. Thirdly, it provides sufficient guarantees for the completion of construction by third parties as a result of the occurrence of circumstances specified by law," First Deputy Minister of Economy of Ukraine Denys Kudin was quoted in the press release as saying.
Kudin added that this decision is important for launching the E-Oselia mortgage lending program in the primary real estate market.
"In order for banks to determine the riskiness of a mortgage operation, an object of construction in progress must be entered in the public register with a determination that there is no encumbrance of the guarantee share," Kudin said.
