- Home
- Business
- News
- Extension of Russian Special Mortgage Program to Cost Budget $555Mln - Finance Ministry
Extension Of Russian Special Mortgage Program To Cost Budget $555Mln - Finance Ministry
Fahad Shabbir (@FahadShabbir) Published June 15, 2021 | 09:22 PM
The extension of Russian preferential mortgage program by another year will cost the country's budget 40 billion rubles ($554.6 million), the Russian Finance Ministry said on Tuesday, adding that it had prepared a draft government decree
MOSCOW (UrduPoint News / Sputnik - 15th June, 2021) The extension of Russian preferential mortgage program by another year will cost the country's budget 40 billion rubles ($554.6 million), the Russian Finance Ministry said on Tuesday, adding that it had prepared a draft government decree.
Earlier in June, Russian President Vladimir Putin proposed to extend the cheap mortgage program until July 1 of next year, as well as raising its cap to 7% and lowering its limit to 3 million rubles ($41,520). The program, capping mortgage at 6.5%, was initiated in April 2020 to support citizens during the COVID-19 pandemic. It was already extended last October until this July 1.
"The estimated 2021-2024 budget costs for the extension of the 7% mortgage will be about 40 billion rubles, and the budget costs for the modification of the family mortgage for the same period will about 49 billion rubles," the ministry said in a statement.
It is also proposed to provide the family mortgage at a rate of up to 6% to families with one child born after January 1, 2018.
The maximum loan amount for a family mortgage in Moscow, St. Petersburg, Moscow and Leningrad regions will be 12 million rubles, in other regions 6 million rubles.
In the meantime, Russian Deputy Prime Minister Marat Khusnullin said on Tuesday that the housing price hike in the country, witnessed since the introduction of the cheap mortgage program last year, was influenced not so much by the program as by the COVID-19 pandemic.
"The mortgage greatly boosts prices. We analyzed each settlement, each region, the Federal Antimonopoly Service did a great job, and proved that the mortgage on average influenced the price increase this is plus 4-5%. Everything else is not mortgage, it is really pandemic," Khusnullin told the Rossiya-24 channel, adding that "because of the pandemic, the construction [of housing] was delayed" or even suspended.
Housing prices in Moscow have increased by almost a third, and by nearly 50% in St. Petersburg since May 2017.
Related Topics
Recent Stories
Nazish Jahangir denies viral screenshots, calls them fake
Govt likely to hike electricity price once again
Bismah Maroof announces immediate retirement from international cricket
Malala expresses unwavering support for Gaza people
Selection committee dissolved over Pakistan women cricket team's poor performanc ..
Punjab CM Maryam Nawaz in police uniform at Chung police center
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 25 April 2024
Today Gold Rate in Pakistan 25 April 2024
Mired in crisis, Boeing reports another loss
Session Awarding Ceremony 2024 held at Cadet College Muzaffarabad
Austrian ski great Hirscher to make comeback under Dutch flag
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
More Stories From Business
-
Govt likely to hike electricity price once again
40 minutes ago -
Mining giant BHP launches bid to take over rival Anglo American
59 minutes ago -
Gold rates up by Rs500 per tola to Rs242,500
2 hours ago -
Tokyo stocks end lower after Meta results
2 hours ago -
EXCHANGE RATES FOR CURRENCY NOTES
4 hours ago -
Foreign exchange rates
4 hours ago
-
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 25 April 2024
6 hours ago -
Today Gold Rate in Pakistan 25 April 2024
6 hours ago -
Meta profits soar but costs of AI cause worry
7 hours ago -
Mired in crisis, Boeing reports another loss
15 hours ago -
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
15 hours ago -
British-Pakistani firm unveils $35 million luxury apartments for overseas Pakistanis in Islamabad
16 hours ago