Russia’s Sberbank CEO says mtges not to require state aid in ‘17

MOSCOW, Aug 4 (PRIME) -- The Russian government will not have to subsidize mortgages of Russian banks at affordable rates in 2017, CEO of the country’s biggest lender Sberbank German Gref told President Vladimir Putin at a meeting on Thursday.

“Whereas until June mortgages were mainly supported with state subsidies, the secondary and the primary market demand has begun to rise now. And we hope that this (mortgage) rate decrease will result until the year end in no need for state subsidies next year,” Gref said.

The current cut-rate mortgage subsidy program will remain in force until 2017. Russian mortgage lending may stand at 900 billion – 1 trillion rubles in 2016, Construction, Housing, and Utilities Minister Mikhail Men forecasted in March.

Gref said that mortgage rates can fall below 11% in 2017. “If the situation develops the way it does, I think, we will really be able to see the level of mortgage lending at below 11%.”

But the official said that Russians who want to buy housing should take advantage of the current low prices.

“You are absolutely right,” he told Putin. “Because there are two factors in any economic process: the mortgage will be cheaper but housing will start growing in price straightaway. This is why I think this is one of best moments, when mortgage is already cheap and housing is cheap yet.”

(66.7420 rubles – U.S. $1)

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