VTB CEO sees Russia’s average mortgage rate down to 10% by 2018

NOVO-OGARYOVO, Moscow Region, Aug 17 (PRIME) -- The average interest rate on Russian mortgage loans is expected to fall to 10% by the end of the year from around 11% currently, Andrei Kostin, CEO of the country’s second biggest lender VTB Bank, said on Thursday at a meeting with President Vladimir Putin.

“Economic recovery leads to growth of the loan portfolio, including work with the population. I would like to say that we expect the mortgage loan portfolio to grow 23% this year. There is a positive trend in reduction of interest rates. At present, the average mortgage rate amounts to around 11%, but we believe that it should decrease to 10% by the end of the year,” Kostin said.

VTB said on Wednesday it will reduce mortgage rates to 9.5–10.0% for secondary housing and to 9.7–10.0% for new housing on Thursday.

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