You're reading: Azarov: Home prices not to rise due to issuance of home loans at 2-3% from May

Ukrainian Prime Minister Mykola Azarov has said that home prices will not rise due to the issuing from May 2012 of home loans for 10-15 years at 2-3% per annum.

"The home loans that we are talking about cannot trigger a rise in property prices in the country, because it means the supply [will rise] of more affordable housing on the housing market. And, therefore, if this influences the housing market, it will influence it positively, with a reduction in prices," he wrote on his page on Facebook, while communicating with users of the social networking system on March 23.

Azarov said that due to the fact that the government will bear the costs of compensating for the difference in interest rates, then it would of course have the right to regulate prices for such housing.