MOSCOW, November 14. /TASS/. Russia’s Deputy Finance Minister Aleksei Moiseev assumes there is no threat of a bubble on the fast-growing mortgage market now.
"I don’t see such risks at all. I do not view is as a bubble, but a situation related to rates getting to the single-digits. This is an unprecedented situation for the local market," he said.
Russia’s Central Bank said earlier that it does not expect a mortgage bubble in Russia in the short-term, as has been reported by Vedomosti business daily. Though the mortgage growth exceeds the current economic revival rates, it has not reached the critical level yet, the regulator said.
However, Professor at the Higher School of Economics Oleg Vyugin, who is former First Deputy Chairman of the Bank of Russia and ex-head of the Federal service on financial markets, has warned about mortgage bubble risks, saying that only economic growth can ensure payments of rising mortgage commitments.