Page 99 - RusRPTOct20

740bn, while it could be prolonged through 2021, subject to the efficiency of the existing programme and the availability of funds, according to Minister of Construction Vladimir Yakushev.
According to Minister of Construction Vladimir Yakushev, the subsidised mortgage programme at 6.5% rate could be prolonged to 2021​, subject to the efficiency of the existing programme and availability of funds. The subsidised mortgage programme has been in place since 17 April and has, in our view, had a strongly positive effect on residential sales during the pandemic-related economic turbulence. In the sales of the publicly listed developers, the share of mortgage sales climbed an average of 10pp from 50% in 2019 to 60% in 1H20. PIK reports the leading contribution of credit sales, at 76%, followed by LSR with 59% and Etalon with 40% (all as of 1H20). All in all, the programme was able to support the developers rouble sales in 1H20 (almost flat y/y), partially offsetting pandemic-related pressure on the market. As of July 2020, the blended mortgage rate went to a record low 7.28%, while 7m20 origination is up 20% to RUB 1.8bn. The existing programme is in place until 1 November and our focus is on its sustainability and consumer budgets toward YE20. Prolongation into 2021 on comparable conditions would become sizeable tailwind for developers in the short term.
8.1.8 ​Sberbank news
Russia's largest bank, state-controlled Sberbank, in an interactive presentation kicked off Sber Universe digital ecosystem under the Sber brand, introducing new products, services and devices. ​As reported by bne IntelliNews,​ Sberbank under its CEO, German Gref, has set out to manage an all-encompassing digital ecosystem under the Sber brand. By 2022 Sberbank plans to move about 80% of its services onto the new platform. Previous unconfirmed reports already indicated that Sbebrank is ready to unveil Sber brand​ this week, along with an array of its own ​AI-powered of smart assistant devices​. Indeed, "the most striking was introduction of own developed devices – smart speaker SberPortal and SberBox, TV streaming device, as well as SmartMarket, equivalent of Apple’s App Store and Google Play," BCS Global Markets commented on September 24, noting that other services and products presented were mostly already known. The services include delivery, taxi, education, music app, online cinema and others. ​bne IntelliNews​ reported that Sberbank had teamed up with ​internet major Mail.ru Group on foodtech and delivery​, as well as bought into a number of ​online content providers​. Sberbank will also make use of technologies with 2GIS map service allowing optimising routes, while AI is offering buying images from movies and air tickets while watching. SberDelivery smart delivery couriers are promised to secure 15 minutes delivery time.
The launch of the Sber ecosystem by Russia's largest bank​ ​Sberbank​, together with rolling out smart devices, subscription and voice aids, is seen as neutral for Russian internet majors Yandex and Mail.ru Group,
99 ​RUSSIA Country Report​ October 2020 ​ ​www.intellinews.com