Ambassador Feldhusen and Deputy Prime Minister Oleksi Resnikov have signed an agreement on financial cooperation. The German Government is thus providing Ukraine a financial support totalling EUR 25.5 million to create housing for internally displaced persons.
The aim of the project implemented by KfW is to refinance a subsidised state loan programme for the purchase of housing. Depending on the actual loan volumes, the grant can be used to refinance around 1,200 loans. Up to 5,000 IDPs will benefit from the project by improving their living conditions and social integration in the local communities. The usual market interest rate can be up to 25% p.a., but the national loan programme allows loans to be granted to households at a rate of around 3% p.a. However, the living space of the apartments that are supposed to be financed must not exceed the specified limit of the state loan programme.
Although a significant number of Ukrainian IDPs are now employed on a paid basis, a large number of them still do not have housing that meets their needs. Many of the families often traumatized by the displacement and the personal and financial loss have only limited access to housing or are forced to move several times a year due to short-term rental contracts. As a result, these families are deprived of a stable livelihood and their participation in society is strongly restricted – they are threatened with social isolation. At the same time, about half of the households affected have children who have to spend their childhood in an environment marked by changes and are therefore disadvantaged in their personal development.
With this project, Germany is helping people affected by the war in eastern Ukraine to secure their economic and social existence-said Ambassador Anka Feldhusen.
In order to promote a sustainable and structural improvement in government lending to IDPs, the project will also be accompanied by a supporting accompanying measure to strengthen the relevant government agencies in their technical and organisational capacities.