Sberbank, min mull subsidies for housing projects with escrows

MOSCOW, Apr 9 (PRIME) -- Russia's biggest lender Sberbank and the Construction Ministry are working on subsidizing interest rates on project financing of housing construction in projects with sales via the escrow accounts, Deputy CEO of the bank Anatoly Popov said Thursday.

"Sberbank and the Construction Ministry are working on subsidizing interest rates on project financing of housing with escrows," Popov said.

He said that according to preliminary estimates of the bank, the project financing market with escrow accounts will need about 55 billion rubles in subsidies for four years with two thirds of the amount for the next two years.

He said that shared-equity construction projects require a different kind of support. Popov also said that low-margin escrow housing projects must receive financial support as well through interest rates and infrastructure spending subsidies.

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