MOSCOW (Reuters) – The Russian finance ministry on Friday said it was adjusting some terms of a preferential mortgage programme that enables households to borrow money at a lower interest rate than the market rate.
The central bank, which on Friday hiked interest rates to 16% in the face of stubborn inflation pressure, has spoken out in favour of adjusting the scheme as mortgage lending has grown sharply this year.
The finance ministry said the loan limit in some regions in Russia’s Far East would be increased to 9 million roubles from 6 million roubles. Preferential mortgage rates are at 8%.
President Vladimir Putin extended the preferential lending programme by 18 months on Dec.
15 2022. The scheme is due to remain in place until at least July 1, 2024.
(Reporting by Alexander Marrow)
