Putin suggests special mortgage for families with 2, 3 children

MOSCOW, Nov 28 (PRIME) -- Russia should launch a mortgage program for families that will have a second or a third child starting from 2018, where the government would subsidize rates of above 6%, President Vladimir Putin has suggested on Tuesday.

“I suggest launching a special program for provision of mortgage loans, and families that will have a second or a third child starting from 2018 will be able to use it,” he told a coordination council for implementation of the national strategy in the interests of children.

“When buying housing at the primary market or during refinancing of previous loans, these families will be able to count on government subsidization of the interest rate above 6% annually.”

The central bank says that the current weighted average mortgage interest rate amounts to 10.05%, meaning that the government will reimburse 4 percentage points. “Estimates of the Constructions Ministry show that this program will cover more than 500,000 families in the next five years,” he said.

He also said that the government will set a monthly 10,500 ruble payment for the families that will have the first child starting from January 2018 to be paid until the child is 18 months old. Later the payment will be calculated on the basis of a minimal monthly living wage for children, which amounts to 10.523 rubles in 2018, 10,836 rubles in 2019, and 11,143 rubles in 2020.

“The financial cost of implementation of these measures will stand at 144.5 billion rubles over the next three years,” Putin said.

Putin also suggested the government prolong the maternity capital program, which is paid to every family with two children, until the end of 2021, and allow monthly payments of the sum to families that are in a dire situation.

In 2017, the maternity capital amounts to 453,026 rubles.

“You know, that the term of maternity capital expires next year. Many of you heard have requests, and people constantly send requests to me asking what will happen next. I suggest prolongation of the maternity capital program until December 31, 2021,” he said.

“Families that will be in dire need will be allowed to receive money of the maternity capital in monthly installments,” he said, adding that these payments will amount to a monthly living wage for children and will vary depending on the region.

The Russian government and regional authorities should work out a schedule for reconstruction of children hospitals, which will require 50 billion rubles, he said.

He added that 60 regions, where women usually have two or fewer children will receive federal support starting from 2018 to ensure provision of social payments. According to the Labor and Social Protection Ministry, the combined amount of federal funds earmarked for these social payments will reach 18.5 billion rubles in 2018.

(58.2773 rubles – U.S. $1)

End