Ukraine and Germany have signed an agreement to extend the preferential mortgage lending project for internally displaced persons (IDPs) with new funding of EUR 33 million, Deputy Prime Minister for the Restoration of Ukraine, Minister for Communities and Territories Development Oleksiy Kuleba said.

"The document provides new funding for the preferential mortgage lending program for IDPs in the amount of EUR 33 million. Thanks to this, about 600 internally displaced families will be able to purchase their own housing on preferential terms already this year," the deputy prime minister said on his Telegram channel on Tuesday.

According to him, EUR 23 million will be directed directly toward lending to IDPs across Ukraine, while EUR 10 million will be used to support communities that have taken in the largest number of displaced persons.

Under the program, IDPs will be able to purchase housing through mortgages with terms of up to 30 years at an annual interest rate of 3%. Participants will be selected through a random lottery conducted via an open registry.

The program operates under a revolving model: funds repaid by borrowers are not returned to the donor but remain available as resources for issuing new loans to IDP families.

Kuleba recalled that thanks to previous funding tranches of the program, more than 2,400 internally displaced families have already purchased housing.