Russia cuts state-backed mortgage rate, extends scheme
The state-backed mortgage scheme that has helped support a construction boom in Russia had been due to expire on July 1
Russian Prime Minister Mikhail Mishustin signed a decree cutting the state-backed mortgage rate and extending the programme, part of wider measures aimed at stimulating economic growth.
Russia is grappling with the fallout from Western sanctions over what Moscow calls a special military operation in Ukraine to demilitarise its neighbour and rid it of extreme anti-Russian nationalism.
The state-backed mortgage scheme that has helped support a construction boom in Russia had been due to expire on July 1. It will now run through the end of 2022 and the rate will be cut to 9% from 12%, the government said on Sunday.
Keep updated, follow The Business Standard's Google news channel
The move will make houses more affordable for Russian families and support the construction industry, the government said in a statement.
The Russian economy is expected to shrink by 8-10% this year, according to forecasts from the central bank which on Friday cut its key interest rate to 14% in a sharper-than-expected move.
