The issue of mortgage loans in Russia soared from R3.6 billion anually in 2002 to R60b in 2005, Deputy Economic Development and Trade Minister Andrei Sharonov said. The initial installement on mortgage deals will be slashed from the current 40% to between 10% and 15% towards the year-end, the official said. The budget allocates R3.7b for growth in the Federal Mortgage Crediting Agency’s capital. The official has spoken out for drawing Russians’ pension savings to credit mortgage deals. The federal Housing program is aimed at boosting residential housing construction to 80 million square metres yearly by 2010, from 41m sq m in 2004.
Source: AKS, April 13, 2006
