At 6.5% per annum: Mishustin approved the program of preferential mortgages

Russian Prime Minister Mikhail Mishustin approved a program of preferential mortgages at a rate of 6.5% per annum. An instruction to develop such a program was given by President Vladimir Putin.

In accordance with the program parameters, before November 1, 2020, citizens will have the opportunity to take a mortgage loan for the purchase of new housing in the amount of up to 3 million rubles, and in Moscow, St. Petersburg, Moscow Region and the Leningrad Region - up to 8 million rubles.

“The minimum contribution is 20%. The difference between the 6.5% that borrowers will pay and the market mortgage rate will be reimbursed to banks by the state, ”the Cabinet noted.

Earlier it was reported that it was planned to allocate about 6 billion rubles from the budget for the implementation of these preferential offers. Thus, the approved program will ensure the issuance of up to 250 thousand new housing loans.

“It will be a good help for citizens who need to improve their living conditions, and will additionally attract at least 900 billion rubles to the housing sector,” the government said.

Earlier, Russian President Vladimir Putin proposed to launch a program of preferential mortgages during the meeting on supporting the construction industry, which was held on April 16.

Later, during a meeting on measures to support the Russian economy, the head of state indicated that the new mortgage program is a long-term measure. Putin pointed out that it is necessary to create conditions under which "money did not remain only with developers, but worked, supported employment in related industries, along the entire cooperation chain."

Interest holders and refusal of fines

Along with this order, Putin ordered by May 1 to provide a state guarantee of the state-owned company DOM.RF in the amount of 50 billion rubles for the purchase of standard housing from developers.

The Cabinet of Ministers was also instructed to ensure the capitalization of the Fund for the Protection of Interest-holders in the amount of 30 billion rubles for the restoration of the rights of citizens participating in shared construction.

Commenting on this proposal at the meeting on April 16, the head of state pointed out that these resources should be spent on “solving the problems accumulated in past years” so that thousands of families can get housing faster.

In addition to this, the head of state instructed the governors to report on the status of developers using equity funds by May 20 and approve regional plans to support the industry.

In addition, the president instructed Prime Minister Mikhail Mishustin to work out the issue of including the construction industry in the list of those most affected by the spread of COVID-19. The decree notes that in a number of Russian regions "taking into account the prevailing sanitary and epidemiological situation, a decision was made to suspend construction work."

Among other things, Putin instructed the Cabinet before May 1 to provide an opportunity for state customers not to apply penalties to contractors on government contracts in the construction industry.

We are talking about situations in which a failure to fulfill an agreement is caused by restrictions related to the fight against COVID-19.

Infrastructure projects and industry support

Earlier, the president indicated that the construction sector should become a tool for economic recovery in the current conditions.

“At the stage of economic recovery, construction should be one of the locomotives of growth that will attract other sectors,” the head of state said.

In addition to the measures already listed, the president ordered the implementation of large-scale infrastructure projects in the development of measures to support the construction industry.

“When developing measures to support the construction industry, the Government of the Russian Federation should ensure the implementation of large-scale infrastructure projects, including the development of the railway infrastructure of the Baikal-Amur and Trans-Siberian railways, the construction of near and long-distance approaches to the transport passage through the Kerch Strait,” the document says. on the Kremlin website.

The list of projects mentioned by the president also included the development of road and rail infrastructure on the approaches to the ports of the Azov-Black Sea basin, in the central transport hub, as well as on the Black Sea coast of Russia and the modernization of airfields in cities such as Chelyabinsk, Perm, Khabarovsk, Norilsk.

Another point was the development of port infrastructure in Murmansk, the Baltic and Azov-Black Sea basins, as well as in the Far Eastern Federal District.