ST. PETERSBURG, Jun 15 (PRIME) -- Russia’s top bank Sberbank expects mortgage issuance to contract by 20–30% in 2022 to 2.03–2.32 trillion rubles, First Deputy CEO Kirill Tsaryov told PRIME on Wednesday.
“It will largely depend on the key rate. If the mortgage interest rates fall below 10%, we could expect mortgage lending to contract as compared with the previous year, but it will not be a dramatic decrease. I think it will be a 20–30% contraction as compared with the previous year,” he said.
The contraction will be caused by high interest rates and a lower risk appetite from the bank, he said.
Russian banks should expand their mortgage loan portfolios by 10–15% in 2022 thanks to the expansion of the state program for subsidization of interest rates on mortgage loans, he said.
The central bank says that the average interest on mortgage loans issued by Russian banks fell by 0.41 percentage point in April to 7.64%.
(57.0926 rubles – U.S. $1)
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