The implementation of large-scale workforce housing mortgage programs is only possible with close and transparent cooperation between banks and developers, as well as the prompt creation of the necessary mechanisms and regulatory framework, according to Hanna Layevska, CEO of Sigma+.

"Regarding the possibility of launching large-scale workforce mortgage programs, this must be a partnership, very close cooperation between the private sector, developers, and banks. Within this partnership, developers must respond to the concerns, risks, and issues currently voiced by the banking sector and offer compensatory mechanisms and guarantees," Layevska said at the First Affordable Mortgage Forum in Kyiv this week.

According to her, cooperation between banks and developers in Ukraine is complicated by the complex, multi-layered structure of development projects and financial models in the market.

Possible guarantees from developers may include collateral mechanisms, the transfer of corporate rights or land plots, and in the case of workforce housing, down payments financed by developers, interest rate compensation, or guarantees for borrowers.

In addition, it is necessary to create a regulatory framework for the functioning of such programs, taking into account market specifics and clearly defining key concepts, Layevska added.

"There is currently no clearly defined concept of workforce housing mortgages. This means that the program needs to be formalized and coordinated with the relevant government authorities. How long this will take depends on how quickly additional instructions, clarifications, and Cabinet of Ministers resolutions are adopted. That is, the regulatory framework for such a format of cooperation. If there is initiative and goodwill among all participants, the program could be implemented within six months to a year," the expert said.