Finance Ministry worries about cheap mortgage loan program

MOSCOW, Oct 30 (PRIME) -- The Finance Ministry has not yet discussed an increase of the initial installments for loans issued under the government’s cheap mortgage loan program, but the authority shares concerns of the Russian central bank about the program, Deputy Minister Alexei Moiseyev told reporters on Monday.

When asked whether the ministry had discussed the idea of raising the initial mortgage installments, he said, “We are concerned about the growth of popularity of these programs now. We are not discussing it in a practical sense, but my position on the matter is that we definitely have to cut it down. We have not discussed this from a practical standpoint, but I agree with the estimate of the Bank of Russia.”

The state cheap mortgage program for new housing should not be prolonged, he said.

On October 27, Central Bank Chairwoman Elvira Nabiullina said that the regulator had seen signs of the mortgage loan market overheating and that a further increase of the initial installments of the government-backed loans was necessary.

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