Page 101 - RusRPTJun20

restrictions have hit subcontractors and could defer relaunches up to 2-3 months. Analysts’ base case sees 75% lower sales in April-May, 50% in summer, and 25% through YE20, implying a 2020 revenues cut of 30%, while companies have cash to pay their current costs for 5-9 months. The mortgage programme offers a record low rate of 6.5% and covers a wide pool of clients via the RUB8mn mortgage limit in MMA and SPMA and minimum 20% down payment.
Housing construction in the Moscow Metropolitan Area has been frozen since 13 April and was scheduled for relaunch from 12 May. ​The region accounted for 17% of the country’s completions last year and 30-90% in the sales of listed developers. The prime risk to sites being relaunched comes from the sustainability of subcontractors, which are small and medium sized enterprises that could see a sizeable outflow of personnel and liquidity breaks. The pace at, which construction is relaunched also depends on each company’s degree of vertical integration and could take up to 2-3 months, according to Deputy Prime Minister for Construction Marat Khusnullin.
The construction sector in Russia might face financial losses circa 10% in 2020 ​due to the pandemic situation, Deputy Prime Minister Marat Khusnullin said in an interview on May 5. Deputy PM emphasized that the situation is unfolding differently in the regions. “In Moscow and the Moscow Region, losses are higher, of course, as housing construction has been halted. In other regions construction works have been mainly suspended partially, or short-term restrictions have been imposed, which is why partial restrictions are in force only in around eight regions now, with the remaining regions working to a greater or lesser extent,” he explained. As of April 13, construction and repair works have been halted in Moscow, with only medial, underground and transport facilities not covered by restrictions. Similar measures have been taken in the Moscow Region.
101​ RUSSIA Country Report​ June 2020 ​ ​www.intellinews.com