Moscow’s UNIASTRUM BANK became the first Russian bank to cut the mortgage lending program by refusing to issue credits in U.S. dollars. Bank representatives explain that by the low share of those credits in its portfolio and the creation of new mortgage programs. Experts say that the problem is much worse: difficulties with liquidity and the inability to refinance the foreign currency mortgage will force other banks to follow UNIASTRUM BANK’s example. A month ago, UNIASTRUM BANK, which placed 11th among Russian banks in terms of mortgage (R10.5b on August 30), already suspended issuing mortgage credits. At the time, the bank explained it by equipment replacement «in order to boost the quality of clients service.»
Source: WWW.KOMMERSANT.RU, October 3, 2007
