PM Tymoshenko: I promised that every family that is employed or has an income will be entitled, via a government mortgage agency, to receive a loan, for a period of 25 to 30 years, for the purchase of a home; and what’s more, without a down payment and at an annual interest rate of 4 to 6 percent.
Interviewer: I would like you to clarify, what banks will agree to an interest rate of 4 to 6 percent?
PM Tymoshenko: The thing is, it’s not the banks that will be at work here. The rate of 4 to 6 percent will be the product of the government mortgage agency. It’s the kind of agency that taps the cheapest of money — and there are such mechanisms — and then, through refinancing commercial banks and through special rules that do not allow the banks to ratchet up interest rates — we will give such loans to people. Make no mistake: Our task is to make housing so that people can buy it, rather than watch upscale condos being built and passively observe the other guy having a beautiful life. [Amen to that!]
No sooner had PM Tymoshenko unveiled her plan than the Secretariat of the President rained on her parade with a me-too initiative, dismissing Tymoshenko’s low interest rate plan as unrealistic.
As an alternative, the Secretariat championed the idea of a 30 percent government-subsidized down payment, plus cost cuts via issuing free land permits.
All of which suggests that the housing problem is becoming a major theater in the war for votes that will define the outcome of the presidential campaign 2009.
However, until proven otherwise, my satellites will view these initiatives as promise-packed weapons of mass delusion — brand extensions of “No draft in 2008” and “Bandits will sit in prison.”
What Ukraine needs is a housing SDI that will disempower the evil oligarch empire and will empower the Ukrainian Dream. Whoever gets the job done — or at least makes a good start — will get to be President.
Video uploaded from: http://censor.net.ua/go/offer/ResourceID/74579.html