Russian PM orders to allocate RUB 20bln for mortgage annually

Russian PM orders to allocate RUB 20bln for mortgage annually
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Prime Minister of Russia, Dmitry Medvedev, entrusted the Finance Ministry and the Construction Ministry with a task of including the funding in amount of 20 bln roubles annually of priority mortgage and rental housing projects in the federal budget estimates for 2017 and a scheduled period of 2018 – 2019.

The corresponding assignment was given following the presidium meeting of the President’s Council for Construction Development and Priority Projects, the governmental website reports.

According to the document, in 2017, the funding will be allocated in particular from the budget. The Minister of Construction, Housing and Utilities, Mikhail Menn, and the Minister of Finance, Anton Siluanov, have been appointed responsible for the assignments’ performing.

Dmitry Medvedev provided the data, according to which since year 2015, the volumes of granted mortgage credits had increased more than 20 times, whereas in 2014 a record was set with the volume of mortgage credits totaling to 1,760 trl roubles. As Head of the Government indicated, the mortgage market had grown by 40% in 2016.

Earlier, Russian President, Vladimir Putin, advised Russian citizens to take out mortgages then, without waiting until interest rate droped below current 12%.