As a result of too wide application of preferential government programs, because the more preferential programs there are, the more we are forced to maintain a higher rate for everyone else. This statement was made on Thursday, December 7, by the Chairman of the Bank of Russia, Elvira Nabiullina.
The head of the regulator explained that “the more preferential programs there are, the more we are forced to maintain a higher rate for everyone else.” As a result, “the chosen few receive cheap loans, and everyone else pays for these loans.”
Nabiullina noted that there is a temptation “to respond to a high key rate by expanding such programs,” and then again and again — but this only leads to a dead end.
Meanwhile, the Ministry of Finance of the Russian Federation proposed changing the conditions for issuing state-subsidized housing loans in order to reduce the burden on the federal budget, as well as to cool the market, where the gap between the cost of new buildings and secondary housing is growing.< /p>
Real estate market analyst Denis Stukalov noted that the Central Bank’s desire to increase the preferential mortgage rate to the market rate will have virtually no effect on the segment of new buildings, but citizens in need of improved housing conditions may lose their last opportunity to do so.