Min: No signs of bubbles on Russia’s mortgage lending market

MOSCOW, Sep 5 (PRIME) -- There are no signs of a bubble on the Russian mortgage lending market, Economic Development Minister Maxim Oreshkin told RBC on Thursday.

“The real estate market, prices, as I’ve already said, have remained stable for a long time… Of course, there is not a single sign of any bubbles on this market,” he said.

Unlike the consumer lending market, both the pace of portfolio growth and debt burden is much lower than in many countries in the mortgage lending segment, he said.

“But it is clear that a reduction of rates, accumulation of mortgage loans on banks’ balances cannot last forever and banks will have to resell a part of the mortgage portfolio in the form of mortgage securities so that these assets are distributed among a wider number of investors,” Oreshkin said.

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