The MNB launched its Green Mortgage Bond Purchase Programme on August 2, 2021, as part of its green monetary policy toolkit strategy. The strategic objective of the programme was to create a domestic green mortgage bond market and to implement the international best practices, to improve the energy efficiency of the housing stock. Mortgage bonds are covered bonds that are issued by mortgage credit institutions. In the case of green mortgage bonds, the funds raised by the credit institution are used to finance mortgage loans with a positive environmental impact - for example, the purchase of highly energy efficient real estate or for renovation purposes.
Within the framework of the program, the MNB purchased mortgage bonds which complied with international green standards and set additional conditions as well which were aimed at increasing the transparency of the green securities market. In accordance with the market building nature of the programme, during the development of the conditions, the MNB cooperated with the Banking Association and the issuing mortgage banks.
The program successfully fulfilled the goals set at its inception and laid the domestic foundations of the new market segment. By April 2022, all five domestic mortgage banks had issued green mortgage bonds, and the issuers remained active even after the MNB's purchases were suspended, and the stock of domestic green mortgage bonds continued to expand.