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Russian government decides not to extend program on subsidizing mortgage rates

First Deputy Prime Minister Igor Shuvalov says mortgage interest rates, key rate will hopefully decline this year

NOVO-OGAREVO, February 1. /TASS/. The Russian government has decided not to extend the program on subsidizing interest rates on mortgage rates, First Deputy Prime Minister Igor Shuvalov said at a meeting between Russian President Vladimir Putin with members of the government.

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Head of Central Bank: Key rate remains 'anchor' for other money rates on market

"Considering quite significant stabilization on the financial market and the low inflation that we have at the end of 2016, the government decided not to continue this program (to subsidize mortgage rates), because the commercial banks now offer mortgage rates from 12 % or less," Shuvalov told the President.

Mortgage interest rates will decline in 2017 following the key rate of the Bank of Russia, according to Shuvalov.

"We hope interest rates of Sberbank, VTB 24 and other commercial banks will go down along with the key rate reduction throughout 2017 and mortgages will be more affordable for our citizens," Shuvalov said.

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