WORLD EXPERIENCE OF STATE SUPPORT LENDING HOUSING CONSTRUCTIONJournal: University Economic Bulletin. Collection of scientific articles of scientists and post-graduate students (Vol.1, No. 28)
Publication Date: 2016-02-23
Authors : Anton Dyachenko;
Page : 171-179
Keywords : housing loans; banks soft loans; state support;
The article studies the international experience of lending housing construction and analysis of public support for this process to identify positive features and explore the possibilities of their use in Ukraine. Achieving this goal carried out using scientific methods, comparison, historical and logical, systematic approach. Determined that in the last thirty years in politics loans observed two interrelated trends: the first - the transition from the use of subsidies, incentives proposal to use subsidies to stimulate demand, and second, the transformation of the role of government subsidies and other forms of support to develop housing market. The most common and effective economic instruments in foreign countries have preferential bank loans; tax incentives; stimulation of investments allocated for the construction of housing, utilities and energy purpose in remote and inaccessible areas by eliminating tax. Summing up the state's role in the development of housing loans was determined following areas of action: 1) regulation of credit market by creating legal, organizational and economic foundations which provide favorable conditions for housing loans; 2) creation of conditions and programs aimed at increasing the availability of credit, promotion of certain categories of citizens in acquiring housing. Among the forms of public support of housing construction loans can be identified.as loans at rates below market, through a specially created fund, creating conditions for reducing interest rates on loans by the use of benefits in taxes, related to payment of interest on the loan; State support in the implementation of housing programs; insurance risks in lending; upfront subsidies in obtaining credit, paying for a down payment (with mortgages); financing through specialized banks. Experience in other countries shows that the condition of lending is the balance between private and public sources of funding priorities based on providing housing needs of different population groups. To fulfill this condition Ukraine needs financial stabilization, improvement of the investment climate lower interest rates; development of institutional environment; increase public confidence in the banks, of credit bureau; increased financial literacy and the ability to plan the family budget; activation state support for the poor; development of the stock market and insurance.
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