MOSCOW, March 6. /TASS/. Russian banks extended more than 420 bln rubles ($5.5 bln) worth of mortgage loans in February, a 1.5-fold increase compared with January, according to VTB’s figures.

"Russian banks extended more than 420 bln rubles worth of mortgage loans in February, up 1.5-fold compared with January, as estimated by VTB. Subsidized loans, new real estate projects commissioned and an expected contraction of subsidized programs from developers were among growth factors. Meanwhile, last February sales were 12% higher amid roaring demand as rates were expected to grow," the press service of Russia’s second-biggest lender said in a statement.

"Traditionally the real estate market is characterized by low client activity, though this is the second consecutive year with the situation notably different from standard trends. Last year sales were driven by the upcoming growth of the key rate, whereas this year subsidized mortgage loans are the main driver. <…> We expect mortgage demand to be still high and more stable in March compared with last year when the market was more turbulent," Vice President, Deputy Head of Retail Business Department at VTB Evgeny Dyachkin was quoted as saying.

Earlier, Chief Executive Officer of VTB Anatoly Pechatnikov said mortgage loans in Russia might exceed 5 trillion rubles ($67 bln) by the end of 2023, adding that borrowers would mainly focus on the segment of secondary real estate.