Russian President Vladimir Putin has instructed the Government, together with the Bank of Russia, to prepare by 31 March a program to subsidize the interest rate on loans to property developers under the project finance mechanism, according to a statement on the Kremlin website.
“The Government of the Russian Federation, together with the Bank of Russia, must ensure the development of a program to subsidize the interest rate on loans provided to property developers as part of the implementation of the project finance mechanism. The deadline is 31 March 2022,” the statement said.
The instruction follows a meeting with members of the Government on 23 March. At that time, Russian Deputy Prime Minister Marat Khusnullin voiced a proposal to compensate the loan rate for property developers up to 15%. According to him, this will make it possible to attract about 600 billion rubles to the construction sector, finish the construction that has already begun and continue new projects.
According to the Deputy Prime Minister Mr. Khusnullin, 80% of housing in Russia today is built using bank loans (project finance). There are 640,000 escrow accounts in the country, and the funds shareholders accumulated in these accounts amount to 3.2 trillion rubles.
