Extension of preferential mortgage in Russia acknowledged dangerous

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www.vsyako.netPhoto: Oleg Karsaev / “Kommersant”

The expansion of the program of preferential mortgage at 6.5 percent may be dangerous for the Russian budget. According to Deputy Finance Minister Alexei Moiseyev, the program must remain exclusively crisis. He stated at the conference “Vedomosti”, RBC reports.

“A significant expansion of subsidy programs outside the “anticrisis” can become such a pyramid for the budget, because we don’t know what the rate will be in 10-15 years. If the rate is subsidized, it below market, it will not be refinanced, and the life of these loans in fact be more than the [average] seven years which they now live,” said Moses. In his opinion, this situation will lead to unpredictable costs in the future.

Another risk was the growing debt burden indicator (PDN) borrowers. The Ministry acknowledged that approximately 40 percent of Russians cannot afford a housing loan even at zero percent. “We risk inflating a bubble in this market among people”, — said the Deputy Minister.

Preferential mortgage at 6.5 percent in April 2020, announced President Vladimir Putin. Borrowers will be able to purchase on the banks allocated funds housing comfort class. You can apply until 1 November 2020. The loan amount for Moscow and Saint Petersburg is 12 million rubles for the region — 6 million rubles.

Video, photo All from Russia.

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