Page 99 - RusRPTJun21

fell to 9.88% from 9.90% in February, but it was higher than the December rate (9.73%), which remained absolutely minimal. On the whole, the weighted average rate on long-term retail loans decreased in March to 10.17% from 10.21% in February.
The government has extended the programme of subsidised family mortgages to individual housing at a rate of 6%. Qualifying families are those that have a second or subsequent child between 1 January 2018 and the end of 2022.
The participation parameters include the construction contract and a 15% down payment, while the mortgage is capped at RUB12mn for the Moscow and St Petersburg metropolitan areas, and RUB6mn for other regions. Individual housing is an important driver of the overall completions, accounting for 40mn sqm and 48% of the total in 2020. The sector has faced headwinds from the lower infrastructure in remote areas and the lesser availability of mortgages (1% of the portfolio, according to the Ministry of Construction) due to higher credit risks and lower collateral liquidity. The incremental uplift in completions due to the programme being extended is 2.8mn sqm annually, according to the National Agency for Low-Rise and Cottage Construction (NAMIKS), which is 7% of individual housing and 3.4% of total in 2020. We also see this as an additional driver to support the long-term target to raise the country's competitions 46% to 120mn sqm by 2030.
99 RUSSIA Country Report June 2021 www.intellinews.com