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Deputy Finance Minister of Russia Alexei Moiseev warns that extend a new loan program at 6.5% per annum can be dangerous for the budget, so it should remain only crisis. This opinion was expressed today at a conference of the newspaper “Vedomosti”.

Moses believes that the growth of state spending to subsidize interest rates on such loans may create risks for the budget, according to RBC.

“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. And it will have the same nominal 20 years, [so] unpredictable budget expenditures in an uncertain future”, — said the Deputy head of the Ministry of Finance.

meanwhile, in late June, the Chairman of the government of the Russian Federation Mikhail Mishustin noted the potential for further declines in mortgage rates in Russia. “In may, according to Bank of Russia, the average interest rate on such loans fell to 7.4%, there is potential for further reduction. This contributes to, including the launch of the program of preferential mortgage at 6.5%,” — said Mishustin, whose words the press service of the Cabinet.

in early April, Russian President Vladimir Putin instructed the Bank of Russia for may 1 to submit proposals on improving availability of mortgages. In addition, in particular, the government was instructed to develop measures to improve the investment attractiveness of housing construction projects.

In mid-may at the branch meeting, the President supported the idea to launch a special program of preferential mortgage to “support our citizens and the construction industry”. Putin added that under this program it will be possible to get a mortgage at a rate of 65% per annum for the purchase of new housing-class comfort at the price of up to 3 million rubles in the regions and to 8 million roubles in Moscow and St Petersburg. The program of preferential mortgage in the 2020 plan to spend about 6 billion rubles.

23 APR Mishustin approved the program of preferential mortgage at 6.5% per annum. “The rate is not above 6.5% is maintained for the entire term of the loan. The program is distributed on home loans to 8 million roubles in Moscow and St. Petersburg and up to 3 million rubles — in other regions of the country”, — noted in the explanatory Memorandum. In the document it was specified that the reduced mortgage will be valid until November 1, 2020. The difference between market and preferential rate of banks will reimburse the state.

Later Deputy Prime Minister Marat Khusnullin has made it clear that the authorities do not intend to prolong the duration of the program of preferential mortgage at 6.5% per annum after its completion, on 1 November 2020.

In early June, the Ministry of Finance of the Russian Federation considered it appropriate to lower the initial payment on a mortgage to 15% of the total amount of the payment. The corresponding draft resolution, submitted to the government aimed “to implement the instructions of the President of the Russian Federation and stipulates a reduction of the initial contribution from 20% to 15% for mortgage loans (credits) provided under the programs “Family mortgage”, “far Eastern mortgage and discount mortgage at 6.5% per annum”.

on June 23, speaking in another televised address to Russians, Putin has proposed to extend preferential mortgage at 6.5% on the purchase of new homes valued up to 6 million rubles, and in Moscow and St. Petersburg — up to 12 million rubles.

let’s Add that the Russian economy in February—March 2020 was under the powerful impact of two negative factors — the rapid spread of the pandemic coronavirus infection COVID-19 and its deleterious effect on the global economy and collapse in oil prices. Ethe background of the ruble significantly depreciated against the dollar and the Euro. Reacting to the situation, the government and the Bank of Russia adopted several packages of measures to support the economy and citizens.

may 11, Russian President Vladimir Putin announced the end of may 12, a single period of days off, entered March 30, in the fight against COVID-19.

2 Jun Mishustin reported on the nationwide state plan for the recovery of the Russian economy in 2020-2021 years, noting in particular that the cost of the plan will amount to about 5 trillion roubles. June 19, Putin was sent a revised draft of the national plan.