Page 81 - RusRPTOct21

RUB 12mn for the capital and RUB 6mn for the regions) was prolonged until YE23 and its participation parameters were lowered: it now requires just one childorn after 2018 (vs. at least two before).
Funds in escrow accounts placed by construction participants totalled RUB2.4 trillion as of 1 August 2021. Moreover, RUB412.6bn from escrow accounts under completed construction projects have already been transferred to developers or used to repay the loans they raised. The overall limit under currently effective loan agreements concluded and developers amounts to RUB4.46 trillion .
More details on financing trends in equity construction are available on the bank of Russia website.
Based on the data from Dom.RF, the origination of subsidised mortgages reached RUB 3.9bn as of the week ended 2 September. This is less than half the amount in July-August, when every week theathebanksnks were issuing RUB 8.8-9.5bn, and only a tenth of the weekly origination (RUB 30bn,lended) before the subsidised programme was modified (April 2020- June 2021). The data on family mortgages is yet to be provided.
Analysts think that the sector is going to cool in the short term, due to the modification of the subsidised mortgage programme. Its rate was increased 50bp from 1 July (to 7%) and the mortgage limits are now lower, at RUB 3mn for all regions (vs. the RUB 12mn for Moscow and St Petersburg, and RUB 6mn for other geographies). Partially offsetting this, the family mortgage programme (with a 6% rate, and a limit of RUB 12mn for the capital and RUB 6mn for the regions) was prolonged until YE23 and its participation parameters were lowered: it now requires just one childorn after 2018 (vs. at least two before).
Across the listed universe, there is to be a reversal in mortgage sales (75% of deals in 2Q21 vs. 60% prior to the introduction of subsidised mortgages) in the near term, mostly on the lower mortgage limits in Moscow and St Petersburg, as that is unlikely toe offset the family mortgages. Other near-term sectoral downside risks include the higher interest rate environment as well as fragile consumerudgets, while prolonged subsidised family mortgages improve the longer term outlook.
Central Bank of Russia (CBR) introduces capital adequacy ratio for professional market participants. Effective from 1 October 2021,rokers, dealers, asset managers and forex dealers must comply with the capital adequacy ratio and make provisions for credit claims. The relevantank of Russia ordinance haseen registered with the Ministry of Justice.
The capital adequacy ratio is calculated on a monthly basis as the capital to risk-weighted assets ratio, subject to the adjustment factor, and should be
81 RUSSIA Country Report October 2021 www.intellinews.com