On July 2, a press conference was held in Kyiv dedicated to the results of the implementation of the “Housing for Internally Displaced Persons” program, the second phase of which was completed at the end of June.
The event was attended by Natalia Kozlovska, Deputy Minister of Community and Territorial Development of Ukraine; Markus Koll, Head of Cooperation at the German Embassy in Ukraine; Vitaliy Shmeriga, Deputy Head of the KfW Representative Office in Ukraine; Chairman of the Board of Derzhmolodzhytlo Mykola Marchuk, Executive Director of the NGO “Group of Influence” Viktoria Zolotukhina, and representatives of IDP families participating in the program.
The program is implemented by Derzhmolodzhytlo with grant funds from the German government through the KfW development bank. It provides preferential mortgage lending for IDPs who have lost their homes or been forced to leave them as a result of the war. The mortgage terms include a fixed interest rate of 3% with a maturity of up to 30 years.
During the two phases of the program, 1,053 loans were granted. The total amount of funding from the German government was €42.5 million—the grant was used in full.
The Housing for IDPs project has changed the lives of thousands of internally displaced persons, who now have the opportunity to live in their own homes rather than in temporary accommodation, to work, raise children, and confidently plan their future in Ukraine. I would like to note that this project has not only proven to be highly effective. It is unique and has mechanisms that make it the most accessible of all mortgage lending programs in Ukraine.
I express my deep gratitude to the Government of the Federal Republic of Germany, the German Embassy in Ukraine, and KfW Development Bank for your trust, consistency, and belief in our ability to implement complex but extremely important projects,” said Natalia Kozlovska.
Vitaliy Shmeriga, Deputy Head of KfW’s representative office in Ukraine, noted the high efficiency of the program. In particular, he emphasized that part of the loans is issued from a revolving fund – a mechanism whereby the money received by program participants is gradually repaid through mortgage payments and reused to provide new loans to other participants.
“We had a clear task—to make this project as effective as possible. That’s when the idea of a revolving fund arose—a mechanism that allows returned funds to be reused to provide new loans.
During the development process, we talked a lot with internally displaced persons and saw that among them there are always socially active, employed people who have small incomes and want to replace their temporary housing with their own. We wanted to give them this opportunity — and created a tool that works for the future,” said Vitaliy Shmeriga.
The Housing for IDPs project is being scaled up. In May 2025, the Ukrainian government signed an agreement with the Council of Europe Development Bank (CEB) for €50 million to continue the program. This will enable approximately 1,100 IDP families to purchase their own homes on preferential terms by the end of this year. Currently, nearly 36,000 families have submitted applications to participate.
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