Putin instructed the government to find a way to reduce mortgage rates

The demand for housing can only be met through market mechanisms, including mortgage lending, so the government and the Bank of Russia should seek opportunities to reduce rates on mortgages, said President Vladimir Putin at a state Council meeting on issues of construction sector development and improve urban planning.

“Over the past five years this tool [mortgage lending] has allowed to provide growth of volumes of housing construction by 60%, while the volume of economy class — 90%. A mortgage is a powerful engine housing, and the government together with the Central Bank certainly needs to look for opportunities to reduce interest rates on such loans,” Putin said (quoted by “RIA Novosti”).

The President stressed the need to find new mechanisms for attracting financial resources to the mortgage, not the burden on the budget, new additional costs.” “I know that the state Council working group has drafted the relevant proposals”, — said Putin. He noted that “in the structure of the construction industry, three quarters belongs to the residential construction and encouraged to find out by what else you can reduce the number of different kinds of permitting procedures and the terms of approvals.

“We need to fully support this sector, without delay, to give land for housing to help the investors in providing public infrastructure. Also need to look at whereby it is possible to further reduce the number of different kinds of procedures and the terms of the agreement”, — said the President.