The Ministry of Finance: concessional mortgage can extend through the anti-crisis Fund

The Ministry of Finance: concessional mortgage can extend through the anti-crisis Fund

The government is discussing measures to support the construction industry, from the decisions made will depend on the extension or non-extension of the program of preferential mortgage, said Deputy Minister of Finance of Russia.

MOSCOW, 28 Oct. Funds for the extension of the support program of preferential mortgage in 2016 can be found in the anti-crisis Fund if the decision on its creation was accepted, stated to journalists the Deputy Minister of Finance of Russia Alexey Moiseev.

Support program of preferential mortgage is available from 1 March 2015 to 1 March 2016, but the head of the government Dmitry Medvedev instructed to consider the extension of its terms. A final decision on this account has not been made yet.

“The program is, we now see that she is quite active. Now the government discusses measures to support the construction industry next year. Renewal or non-renewal of the program will depend on integrated solutions,” said Moiseev.

“Here budget additional expenses will be required, except that it was assigned to the Ministry of construction. If additional measures will be taken — they will be taken into account anti-crisis Fund, if the establishment of the anti-crisis Fund will be supported”, he added.

Previously, it was also discussed to include in the program the opportunity to purchase housing on the secondary market, however, this idea was rejected by the Ministry of Finance, since one of the objectives of the program is to stimulate construction. “Any expansion of the program from the point of view of programme quality are not discussed. We only discuss the question of its renewal in its current form,” said Moses.

The government has provided in this year’s budget 20 billion rubles to subsidize interest rates on mortgage loans for the purchase of a primary residence, so they were not above 12% per annum. It was assumed that this will allow banks to issue mortgage loans on 400 billion rubles. Later the government extended the program of preferential mortgage lending with state support up to 700 billion rubles.