📋 Tender Overview
Russians should not expect a restart of the state program of mass preferential mortgages for new buildings, said Deputy Chairman of the Central Bank Alexey Zabotkin at the Financial Congress of the Bank of Russia.
"We should not expect a restart of mass preferential mortgages. It was an anti-crisis and short-term instrument that was introduced in 2020 at the peak of the pandemic for a period of six months and then repeatedly extended. Probably, if comparable conditions develop, the government may decide to use this instrument, but within the framework of the baseline scenario, this is unlikely. We see what happened in the housing market in 2021-2023 and what risks it carries," said Alexey Zabotkin.
Instead of subsidizing preferential loans at the expense of the state budget, the Bank of Russia intends to achieve a turning point in the fight against inflation, the deputy chairman of the Central Bank emphasized. After this, rates on housing and all other loans will themselves fall to the levels of 2017-2019, when the rate of price growth was near the Central Bank's target of 4%.
"In those years, there were no large-scale preferential mortgage programs, while market mortgage rates were 8-10%. If inflation falls to 4% again, then interest rates on loans, including mortgages, will return to an acceptable level," he explained.
Let us recall that the state program of preferential mortgages for new buildings at 8% per annum for an unlimited number of people officially ended on July 1, 2024. The Central Bank has repeatedly indicated that this program, useful when launched in 2020, was delayed, was not curtailed in time, and ultimately provoked an increase in prices, and also led to a decrease in the availability of housing for Russians.
