Mortgage lending in 2015 could decline 2.5 times if no government support mechanism is found, VTB 24 CEO Mikhail Zadornov forecasts.
"This will throw housing construction to 2005-2006 in terms of housing to be put into operation. We're discussing mechanisms to support the mortgage lending market," said Zadornov. In particular, he proposed such instrument as subsidizing interest rates on mortgage loans from the budget.
"Our mortgage lending currently equals 15.95%. I deem useless to raise the mortgage lending rate above this one otherwise such loans become pointless for borrowers…Lending at much lower rates means losses. If no support mechanisms are offered, we'll begin to cut mortgage lending," he pointed out, adding the normal interest rate for a mortgage loan presently stands at 13-14%.
