Central bank, Finance Ministry develop mortgage with floating rates

MOSCOW, Apr 28 (PRIME) -- Russia’s central bank and Finance Ministry are developing regulation for mortgage lending at floating interest rates, Director of the Central Bank’s Financial Stability Department Yelizaveta Danilova said at a banking forum on Wednesday.

“We have received many proposals from the banking community on such regulation and the ways to reduce borrowers’ risks. Now we are discussing the regulation with the Finance Ministry to make it both safe for the clients and profitable for the banks,” she said.

Earlier in April, President Vladimir Putin ordered the government and the central bank to develop a law regulating floating interest rates and crediting periods for the retail loans, including mortgage. Floating rates for retail loans are presently almost not used in Russia although they not prohibited by the legislation.

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