Mortgages set to rise

The amount of mortgages issued under housing programs in Russia would rise to between RUR 108 billion and RUR 110 billion by the end of this year, Deputy Prime Minister Dmitry Medvedev said at a conference on the involvement of Russian credit organizations in the implementation of national project. Medvedev said about 350 banks had been involved in housing mortgage programs, and this figure could rise further. “The housing mortgage market is huge, and it could increase many times over in future,” he said, noting that mortgage was not the only way of banks’ participation in the performance of national projects.

Measures are planned to encourage investment in infrastructure projects. The government would allocate RUR 1.7 billion in subsidies for mortgage borrowers, and another RUR 12.5 billion for guarantees for mortgage programs, Medvedev said.

He also pointed to the necessity of improving legal conditions of lending programs for developers. Medvedev said the State Duma would consider amendments to the law on participatory construction of multi-apartment houses and other real estate.

There are four national projects in Russia: in education, healthcare, affordable housing and agriculture. Dmitry Medvedev supervises the implementation of these national projects.