Russian Government intends to subsidize the interest rate on mortgage for citizens

UFA, 5 February 2015. /Bashinform News Agency, Catherine Sokolova/. The Russian Government has decided to subsidize the interest rate on mortgage for citizens. For these purposes 20 billion rubles will be allocated, the Prime Minister of the Russian Federation Dmitry Medvedev informed about it at a meeting of executives of the regional branch of the "United Russia" party in Ufa.

The Government decision on allocation of funds to subsidize the interest rate on mortgage will provide housing purchasing at 13 percent per annum. Margin difference will be paid from the federal funds. In addition, the initiative will support the real estate market.

According to Dmitry Medvedev, it is necessary to keep this support tool for the period of high enough key rate of the Central Bank in order to allow citizens entering into mortgage contracts.