MOSCOW, March 7. /TASS/. Russian banks will extend new mortgage loans in the amount of 4.6-5 trillion rubles ($60.9-66.2 bln) in 2023, which is equal to last year’s figures, according to research by National Credit Ratings (NCR).

"In 2023, Russian banks will extend new mortgage loans in volumes equal to last year’s (4.6-5 trillion rubles) even amid growth of rates and tightened regulation. The demand will be supported by maintained subsidized program, an increase in maternity capital and stabilization of new housing prices. As a result the mortgage portfolio may approach 16 trillion rubles (+15.6%) by the end of the year considering 4.6-5 trillion rubles worth of extensions expected by the NCR," the rating agency said.

Average mortgage interest rates are expected to grow above 8% as early as by the end of Q1 2023, and above 9% in Q2 after new risk ratio surcharges are enforced, the agency noted, adding that a sharp rise in rates is not expected provided there are no new macroeconomic shocks.