Housing Finance Markets in Transition Economics


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Date Published 2007
Primary Author Shigehiro Shinozaki
Other Authors


The year 2004 was notable for transition economies, in particular as ten of them finally joined the European Union. Their capital market and banking sector reforms have been proceeding at different speeds and scales. In comparison, however, their housing finance markets are typically small in scale and under developed, though it is generally recognised that fostering housing finance markets contributes to economic development and brings social benefits to the public. Taking account of the unfavourable environment for households in terms of income level, house price and loan interest rates in the region, enhancing the access to housing finance for low- and middle-income households is a key to developing their housing finance markets. Particularly mortgage lending that makes use of the property as collateral is a very important method of housing finance in terms of risk management in the region. In response to the interests of transition economies, the OECD has provided a forum for relevant policy makers, representatives of private sectors and other experts to exchange information and experiences in the field of housing finance since 1996. In this framework, the Workshop on Housing Finance in Transition Economies was held at the OECD headquarters in Paris on 14-15 December 2004, which was organised by the Outreach Unit for Financial Sector Reform, the OECD Directorate for Financial and Enterprise Affairs, under the aegis of the Committee on Financial Markets and the Centre for Co-operation with Non-Members. The Workshop was sponsored by the Government of Japan. This publication was prepared by Mr. Shigehiro Shinozaki, Administrator of the Directorate for Financial and Enterprise Affairs, together with policy makers and experts from selected transition economies including Croatia, the Czech Republic, Estonia, Hungary, Kazakhstan, Lithuania, Latvia, Poland, Romania, the Slovak Republic, Slovenia and Ukraine. This volume consists of a comparative study on housing finance markets in transition economies based on the market survey in 2004, country reports prepared for the Workshop in December 2004, and the summary of critical discussions in the Workshop. All papers were updated as of April 2005. The views expressed in this publication are those of individual authors and do not necessarily reflect those of the OECD or the governments of non-member countries.

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