Mortgage in Russia

Mortgage in Russia

Predominant article: Lending in Russia

Overdue mortgage debt

Predominant article: Overdue mortgage debt

Digital mortgage

Predominant article: Mission:Digital mortgage


Sberbank first issued a mortgage loan on-line within the secondary market

On March 10, 2021, Sberbank introduced that it had first issued a mortgage loan for the acquisition of completed housing with no go to by the customer and vendor to the financial institution – utterly in a distant format. All paperwork had been signed by enhanced certified digital signatures. The deal was carried out due to DomClick companies from Sber. Extra particulars right here.

The complete value of a mortgage loan fell to eight.6% each year

In February 2021, the complete worth of the mortgage loan dropped to eight.6% each year. 

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However on account of rising costs for flats, the typical loan quantity continues to develop, in February reached 2.76  million rubles. (2.46  million rubles in February 2020).  There are robust imbalances available in the market – the price of housing within the pit stage virtually coincides with the price of already completed housing.


Development within the variety of mortgage transactions by 18%, as much as 3.5 million

On the finish of 2020, the variety of mortgage transactions registered by the Rosreestr reached 3.5 million in opposition to 3 million a yr earlier. Thus, there was an virtually 18 per cent improve.

On this quantity of transactions, the share of digital mortgages in 2020 exceeded 37%. In complete, Rosreestr obtained greater than 26.3 million functions for registration and registration actions over the yr, virtually 2 million of them for mortgage registration. Greater than 747 thousand packages of paperwork had been submitted electronically.

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Top Loan Mortgage -

The variety of mortgage transactions in Russia in 2020 elevated by 18%

Within the complete quantity of transactions with major actual property, the share of digital property additionally elevated – from 20% to 44%. Over the yr, 412.8 thousand fairness agreements had been filed on-line out of 950 thousand obtained by Rosreestr. In complete, in 2020, 764 thousand fairness agreements (DDU) and three.7 million property switch rights to the secondary had been registered.

We’re creating digital companies, the banking sector is actively mastering digital registration, submitting increasingly paperwork in digital kind, and this reduces the time for registration, passing paperwork. We’re shifting away from paper, “mentioned Andrei Roerich, deputy head of the Rosreestr Workplace for the Altai Territory.

In line with TASS, citing Rosreestr information, if in April 2020, in reference to the restrictions launched because of the COVID-19 coronavirus, the variety of registered mortgages in Russia decreased to 173.8 thousand, then in June this determine amounted to 252.7 thousand, and in August – 322.8 thousand. Within the following months, the indicator steadily grew by 30 thousand mortgages. Many of the transactions involving loans had been registered in December 2020 – 441 thousand, which is 38% greater than in December 2019.

In line with the pinnacle of Rosreestr Oleg Skufinsky, mortgage lending packages with state help turned an efficient mechanism and a further incentive for restoring the mortgage market.[1]

The variety of refinanced mortgages in Russia elevated by 167%, to 234 thousand.

In 2020, the variety of refinanced mortgages in Russia elevated by 167% – to 234 thousand from 88 thousand a yr earlier. That is evidenced by the info of the analytical heart “Дом.РФ.”

In line with consultants, in 2020, Russians refinanced mortgages totaling about 600 billion rubles, which is a document for the Russian market. The share of refinancing transactions within the complete quantity of mortgage issuance elevated to 13.7% in comparison with 6.8% in 2019. By the tip of the yr, the refinancing fee fell beneath 8%, in 2019 it averaged 9.5-10%.

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Top Loan Mortgage -
The market has the perfect circumstances for refinancing beforehand taken loans. In line with our estimate, the typical fee of the present mortgage portfolio is 10-11%, whereas the loan might be refinanced at a median of 8%. That’s, the profit for the borrower is greater than two share factors. This permits him to considerably cut back the prices of curiosity funds, “commented Mikhail Goldberg, head of the Дом.РФ analytical heart.

In line with him, the expansion of refinancing has a optimistic impact on the standard of the mortgage portfolio within the nation: the decrease the cost burden on residents, the much less possible mortgage defaults are. The share of overdue mortgage debt over 90 days in Russia by the tip of 2020 yr amounted to lower than 1.4%, together with loans within the major market – lower than 1.1%.

Banks are fairly keen to refinance mortgage loans of different credit score organizations – as a rule, a borrower who for a while frequently paid a mortgage is taken into account extra dependable than a brand new shopper, Ekaterina Shchurikhina, junior director of banking rankings at Skilled RA, instructed Kommersant. For present collectors, she mentioned, refinancing a loan at a decrease fee is a method to maintain a shopper in a financial institution, in any other case he’ll go to opponents.[2]

Mortgage issuance in Russia has grown to a document

In 2020, Russians issued 1.7 million loans for the acquisition of housing for a complete of 4.3 trillion rubles, which is 35% and 30% greater than a yr in the past, respectively. The market quantity was a document, in line with analysts “Дом.рф.”

Specialists related the speedy growth of mortgages with a number of elements, the primary of which is a lower in market charges for housing loans – as much as 8% from 10-11% in 2019. As well as, the launch of preferential packages helped popularize mortgage lending, particularly, a program for issuing loans at 6.5% for the acquisition of flats in new buildings. As a part of the state program of preferential mortgages, 345.6 thousand loans value greater than 1 trillion rubles had been issued.

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Top Loan Mortgage -
In consequence, within the section of recent buildings, which is especially topic to preferential packages, the typical fee decreased to about 6%, “mentioned Vitaly Mutko, Director Normal of Дом.рф.

On the identical time, the primary progress of the mortgage market is offered by loans for the acquisition of completed housing (about 70% of issuance). New mortgages (excluding refinancing) in 2020 had been issued about 1.5 million, which is 25% extra in comparison with 2019. The mortgage portfolio, making an allowance for securitization in annual phrases, elevated by 19.4%, to 9.8 trillion rubles (9.2% of GDP).

Top Loan Mortgage -

Top Loan Mortgage -

In line with the Дом.рф report, in 2020, Russians got 990 new loans for completed housing, which is eighteen% increased than the worth of a yr in the past. The variety of refinanced loans elevated by 167%, to 234 thousand, and the variety of housing loans for brand new buildings rose by 43%, to 485 thousand. The common mortgage fee for housing in a brand new constructing decreased yr on yr by 2.9 share factors – to five.9%.

Дом.рф famous that regardless of issues, document demand for mortgages in Russia didn’t result in the formation of a “bubble” available in the market. Mortgage lending stays the very best high quality section of the lending marketplace for people, analysts emphasised.[3]

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Registry workplace information will likely be transferred to public companies for distant mortgage registration

Knowledge from the Unified State Register of Civil Registration Information (USR Registry Workplace)  will likely be transferred to the Unified Identification and Authentication System (ESIA, used on the general public companies portal) to be able to present distant banking companies. Extra particulars right here.

Russian mortgage debt progress to eight.1 trillion rubles

The portfolio of mortgage loans of Russian  banks as of August 1, 2020 for the primary time in historical past exceeded 8.131 trillion rubles, follows from the info of the Central Financial institution. A rise of 639 billion, 8.5% because the starting of the yr.

In July, the whole mortgage debt of Russians grew by 2.1% – to eight trillion rubles. A yr in the past, as of August 1, 2019, the quantity of Russian mortgage debt amounted to 7 trillion rubles.

The quantity of overdue loans in the beginning of August amounted to 75.6 billion rubles – that is 0.6% extra in comparison with June (75.1 billion rubles), in addition to 3% greater than a yr earlier (73.3 billion rubles).

VTB clients will obtain 200 million rubles to repay mortgages as a part of digital interplay with the FIU

On Might 28, 2020, VTB introduced that it had despatched greater than 430 functions for the disposal of maternity (household) capital as a part of the digital interplay course of with the Russian Pension Fund. Through the month of labor on XML information change expertise, clients have already obtained the primary FIU affirmation of a optimistic answer and used the means to enhance housing circumstances. On the finish of Might 2020, the whole quantity of such transfers for functions in work exceeds 200 million rubles.

The financial institution started to simply accept functions for the disposal of maternity (household) capital in all workplaces of the community from April 15. VTB has turn into a company not solely Russia receiving affirmation from the Pension Fund about the suitable of holders of certificates to make use of funds, but additionally implementing the submission and consideration of buyer functions as a part of an digital work format. The primary clients to obtain a cost for early reimbursement of the mortgage credit score as a part of the digital course of was a household from. Krasnoyarsk The biggest variety of appeals on the finish of Might 2020 was recorded within the,,,, Orenburg Irkutsk Stavropol Territory Altai Krai Republic, and. Tatarstan To Moscow St. Petersburg

VTB has carried out the method of totally digital interplay with the Pension Fund of Russia. Because of the launch of this expertise, clients can already apply to the FIU on the time of constructing a mortgage with an announcement on the usage of maternity capital funds. The best process means that you can cut back the variety of appeals to state our bodies. As well as, on account of automation and digital switch of the method, the deadline for contemplating functions and transferring funds is considerably decreased,

commented on Mikhail Seroshtan, head of the Mortgage Lending division – vp of VTB Financial institution.


As a part of digital interplay with the Pension Fund of Russia, debtors can submit functions for the usage of maternity capital to enhance housing circumstances and direct these funds to the down cost on mortgages or for early reimbursement of the loan. You’ll be able to apply at any department of VTB, from the paperwork the shopper will want solely a passport.

Discount of the typical mortgage loan to 2.48 million rubles

The common mortgage loan in April 2020 in Russia fell to the extent of the start of 2019 and amounted to 2.48 million rubles.

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Top Loan Mortgage -

In Russia, for the primary time, they took a mortgage and acquired an house utterly by the Web

April 15, 2020 it turned recognized in regards to the first case when in Russia for the primary time they took a mortgage and acquired an house utterly by. Web The transaction was additionally carried out VTB by the group, in PEAK it the shopper from  the home acquired actual property  within the residential advanced “Sheremetyevsky” in. To Moscow

This isn’t solely a technological breakthrough that we made collectively, but additionally a historic occasion when paper transactions are a factor of the previous, the PIK group mentioned.

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Top Loan Mortgage -

VTB and PIK Group held the primary on-line mortgage issuance in Russia

VTB has switched to a brand new technique of acquiring a mortgage loan. It’s utterly digital  and doesn’t  require a go to to the financial institution’s workplace.  A mortgage software is issued on the  developer’s web site. After its  approval by the financial institution, the shopper indicators all paperwork utterly remotely  – software  for opening an account, credit score documentation, DDU settlement  –  utilizing an enhanced certified digital signature issued by the certification heart. Settlements for the  transaction are carried out on-line by the Meter Sq. safe settlement service (a part of VTB Group).

By mid-April 2020, a pilot undertaking is being carried out in Moscow. PIC clients will have the ability to undergo all of the processes of buying an house on the  firm’s web site: from  making use of for  a loan to  signing a DDU  and acquiring a loan  utilizing a digital signature.

In line with the president of the PIK group, Sergei Gordeev, the corporate labored considerably in order that anybody may get a mortgage and purchase an house with out leaving residence. Though some banks declared such a service, the truth is they changed the idea – both a courier go to  to the shopper or a shopper go to  to the financial institution was required, he mentioned.

The self-isolation regime has turn into a problem for us , and we  had been in a position    to create a very modern product with VTB Financial institution and with the help of the Central Financial institution of Russia. It could appear  {that a} small step  within the growth of applied sciences has turn into an enormous leap for the whole business,  “mentioned Gordeev.[4]

Banks in Russia switched to companies for distant mortgage registration

By mid-April 2020, banks in Russia started to actively develop distant mortgage registration. After the introduction of the self-isolation regime, the Central Financial institution of the Russian Federation quickly relaxed the necessities for banks to establish clients for mortgage transactions remotely. 

Sberbank organized a mortgage loan at residence. Masked staff of Sberbank come to the shopper’s residence to difficulty an enhanced digital digital signature, signal credit score paperwork and ship paperwork for registration of the switch of possession rights in digital kind. The remaining problems with housing choice and registration might be resolved on-line on the DomClick web site.

ДОМ.РФ Financial institution additionally started to conduct digital transactions with mortgages, when clients signal all paperwork with an enhanced certified digital signature utilizing a smartphone. By mid-April 2020, such transactions had been held in Moscow, St. Petersburg, Samara, Nizhny Novgorod and Chelyabinsk, within the close to future the financial institution plans to scale the digital mortgage for all areas of the financial institution’s presence.

Otkritie Financial institution instructed TASS {that a} distant mortgage can be already out there to clients, and the credit score establishment intends to develop this expertise and scale to a variety of debtors.

In line with Igor Dmitriev, head of the Rosbank Dom digital companion enterprise heart, in opposition to the backdrop of elevated mortgage demand, Rosbank is introducing new companies and companies, together with issuing such a loan to the home and paying for insurance coverage in a cell software.

Alfa Financial institution famous that it’s potential to use for a mortgage by April 15, 2020 remotely by the borrower’s private account and with out the necessity to go to the workplace. On the identical time, the financial institution is creating the method of utterly distant mortgage registration.[5]

Raiffeisenbank: 1 / 4 of Russians have no idea why to pay a mortgage forward of schedule

For the massive majority Russians (78%), the scale of the month-to-month cost is extra vital than the time period of the mortgage. credit score This was introduced on February 11, 2020. Raiffeisenbank The evaluation is predicated on a knowledge survey of greater than two thousand folks from 17 giant cities of the nation.

Forward of schedule or partially forward of schedule, 44% of respondents plan to repay the mortgage. The principle motive for refusing this feature of closing the loan is the absence of additional cash. It was allotted by 75% of respondents. On the identical time, virtually 1 / 4 (22%) have no idea why to pay a mortgage forward of schedule.

The common time to shut a mortgage in Raiffeisenbank is 7 years as an alternative of 15,

The vast majority of respondents (73%) are going to spend a tax deduction on early reimbursement. 24% will make investments again cash in repairs. 3% – both beforehand used a tax deduction, or will spend it on themselves: go on trip or replace the automobile.


The primary lower in mortgage issuance in 4 years to 2.8 trillion rubles

Regardless of the discount in charges, the mortgage market collapsed for the primary time in 4 years. Banks in 2019 issued 1.3 million mortgages value 2.8 trillion rubles. In comparison with 2018, in quantitative phrases, the lower was 14%, and in financial phrases  – 5%.

As follows from the report of Skilled RA, in 2019 the quantity of mortgage loans decreased for the primary time in 4 years. In 2016, they had been issued for a complete of 1.5 trillion rubles, in 2017  – 2 trillion rubles, and in 2018  – 3 trillion rubles. The whole quantity of debt on loans amounted to 7.5 trillion rubles.

Russians with mortgages divorce ten instances much less usually

Debtors paying mortgages divorce 10 instances much less usually than different Russians: the share of divorces amongst them is just 2%, whereas amongst those that should not burdened with loan obligations, it reaches 20%, in line with a joint examine by the Equifax credit score historical past bureau and the Nationwide Affiliation of Skilled Assortment Companies.

“Amongst those that should not burdened with credit score obligations, the share of divorces varies from 10 to twenty%, and amongst mortgage debtors it’s minimal – about 2%,” consultants say.

Analysts clarify this by the truth that the household is extra balanced in deciding to difficulty mortgages each when it comes to its monetary capabilities and when it comes to psychological stability throughout the household.

About 40% of Russians paying mortgages after a divorce choice are overdue, however most of them after some time return to fixed funds.

Discount of mortgage issuance by 7% within the first 5 months

In January – Might 2019, banks issued 412,000 mortgage loans value 910 billion rubles, which is 7% lower than final yr.

Banks of the Russian Federation in Might 2019 issued mortgages for 150 billion rubles, which is 31% lower than in the identical interval final yr, when the determine was 218.5 billion rubles.

The OKB famous that in Might 68 thousand loans had been issued for the acquisition of housing in opposition to 109.7 thousand in 2018 (a lower of 38%).

Common Mortgage Measurement Card in Russian Areas

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Knowledge for April 2019

Mortgage fee hikes by main market gamers

Alfa Financial institution chief economist Natalia Orlova considers the potential for progress in mortgage issuance in 2019 “extra restricted than in 2018.” The top of the analytical heart “Rusipoteki” Sergey Gordeyko expects that the problem of mortgages for 2019 will develop to three.3 trillion rubles. Development is more likely to be, however a lot smaller than it was in 2018, agrees Pavel Samiev, basic director of the BusinessDrom company. Mortgage points in 2019 will likely be akin to 2018, analysts say “Дом.РФ.”

Some are ready for outcomes decrease than in 2018. Within the primary situation of Skilled RA, points won’t exceed 2.5 trillion rubles, but when inflationary dangers are totally realized and the Central Financial institution should considerably improve the important thing fee, then they could fall to the extent of 2017 – about 2 trillion rubles, warns Ekaterina Shchurikhina, main analyst at Skilled RA financial institution rankings.

Some builders word a lower within the share of mortgages in gross sales.

For the primary half of 2019, mortgage charges will improve by a median of 0.5-1 pp, Shchurikhina predicts. The weighted common fee of mortgage loans issued in 2019 will attain 10.3-10.5% each year, mentioned Elena Kudlik, deputy chairman of the board of Deltacredit. Gordeyko expects 10%.

The biggest gamers increase bets. In 2019, this was finished by Sberbank, VTB, Deltacredit, Gazprombank, Дом.РФ, Absolut Financial institution, Otkritie FC – by 0.25-1 pp. The common charges in them are 10-11% each year with complete insurance coverage.

Since 2019, the necessities for issuing loans have been tightened: for mortgages with a primary installment of lower than 20%, banks apply an elevated threat ratio of 200% as an alternative of 150%. This requires extra capital from the financial institution to difficulty such loans. On the identical time, mortgages should not probably the most worthwhile product for banks.


Sberbank’s share within the mortgage market decreased from 53 to 51%

The share of Sberbank within the quantity of loans issued within the mortgage market of the Russian Federation decreased in 2018 from 53% to 51%, whereas Alfa-Financial institution turned the chief within the progress fee of lending, in line with the Skilled RA mortgage overview for 2018.

“In 2018, state banks elevated their issuance extra actively – their complete mortgage lending elevated by 52% in comparison with 41% for personal gamers, a yr earlier the expansion fee was comparable (49% and 51%, respectively). The focus of the mortgage market on gamers with state participation elevated in 2018 – their share in points elevated from 85.6% to 86.5%. On the identical time, the share of the biggest participant available in the market – Sberbank – decreased from 53% to 51%, “analysts say.

Most banks from the highest 20 when it comes to mortgage lending in 2018 confirmed a rise in issuance volumes, whereas greater than half of them had a progress fee above the market common. Absolutely the chief within the improve in issuance, in line with analysts, was Alfa Financial institution.

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“The chief within the progress fee of mortgage points because of the low base impact of 2017 was Alfa Financial institution (+ 1177%). The highest three when it comes to progress charges additionally included Otkritie Financial institution (+ 172%) and SMP Financial institution (+ 120%), “the[6] mentioned[6]51%.

The expansion fee of mortgage issuance available in the market as an entire amounted to 49%, in Sberbank – 43%.

1.47 million mortgages issued for 3.012 trillion rubles

On February 6, 2019, it turned recognized that in 2018, for the primary time within the historical past of observations since 2006 banks , 1.47 million mortgage loans value 3.012 trillion rubles had been issued. – 1.5 instances greater than in 2017, it follows from. information CENTRAL BANK The mortgage portfolio reached its most worth – 6.38 trillion rubles.

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The common annual mortgage issuance fee was 9.56% each year in comparison with 10.64% in 2017.

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Top Loan Mortgage -

The minimal for on a regular basis of observations – 9.41% each year – the weighted common fee of loans issued monthly reached in October 2018. Nevertheless, in December it elevated by 0.14 share factors (pp) to 9.66% each year, being on the stage of April – that is nonetheless 0.13 pp decrease than a yr earlier.

Among the many predominant causes for the mortgage growth, analysts “Дом.РФ” within the overview name decreasing charges to a historic low. The market is rising primarily on account of new debtors – the share of refinancing amounted to about 11%, minus it, a “new” mortgage was issued by about 2.67 trillion rubles. (+ 40% by 2018). In line with Дом.РФ, in latest months, the share of mortgage transactions in new buildings is 56%, within the secondary market – 49%.

The common dimension of the mortgage taken over the yr elevated from 1.86 million to 2 million rubles, in line with estimates by Дом.РФ.

In line with Dmitry Tsvetov, director of the A101 advertising and marketing and product growth division, in 2018, the share of mortgages within the firm’s gross sales was 65%.

The mortgage growth in 2018 anxious the Central Financial institution. In September, he said that 44% of mortgage loans had been issued by banks with an preliminary contribution of lower than 20%, and in 2017 their share didn’t exceed 20%.

creator ‘= German Gref, Sberbank Government Board
0.1 pp – web curiosity margin of the mortgage of Sberbank, that is on the verge of profitability.

In line with the Central Financial institution, the share of overdue debt in 2018 decreased to 0.96% from 1.06% a yr earlier. Nevertheless, in line with Vladimir Shikin, deputy advertising and marketing director of the Nationwide Bureau of Credit score Histories (NBCI), the typical scoring rating of mortgage debtors whose information was transferred to the NBCI decreased in 2018 in comparison with 2017 from 718 to 705 factors. This means a potential deterioration within the portfolio sooner or later, Shikin mentioned. Samiev additionally believes that in 2019, on account of a rise within the issuance of arrears, the delay might develop – nevertheless, “barely”[7].

Results of mortgage lending in 2018

2017: Enhance in issuance within the first half of the yr by 15% to the extent of document 2014

In line with AHML, within the first half of 2017 alone, over 420 thousand mortgage loans value 765 billion rubles had been issued within the nation. That is 15% extra in comparison with the identical indicator in 2016 and corresponds to the extent of document 2014. “The present state of the mortgage market just isn’t a priority,” company analysts summarize.

2016:574 thousand loans for 945 billion rubles issued

In 2016, within the mortgage section, the whole variety of new loans elevated by 16%, lending volumes by 19%. In 2016, 575.04 thousand loans value 945.89 billion rubles had been issued, in 2015 – 497.83 thousand loans value 797.20 billion rubles. The “common examine” on mortgages elevated from 1.60 to 1.64 million rubles.

2015: Lower within the variety of new points by 36% to 470 thousand loans by 1.2 trillion rubles

In complete, on the finish of 2015, there have been 2.6 million lively mortgage loans within the portfolios of banks totaling rather less than 3.3 trillion rubles.

The lower within the variety of new points within the mortgage was 36%, volumes decreased by 38%. In 2015, 470 thousand loans had been issued for a complete quantity of about 749 billion rubles, in 2014 – 730 thousand loans for 1.2 trillion rubles. The “common examine” on mortgages decreased from 1.65 to 1.59 million rubles. This is because of the truth that in 2015, Russians extra usually opted for a less expensive section of housing in new buildings, which was offered by state help.

Historically, the steady section of mortgage loans confirmed in 2015 the very best progress charges of overdue debt. That is primarily because of the recalculation of overseas change mortgages at new change charges. Even though overseas change loans make up not more than 1% of the whole variety of mortgages, the weakening of the nationwide foreign money negatively affected the whole mortgage portfolio.

The variety of overdue mortgages for the yr decreased by 3%: from 84 to 82 thousand loans. On the finish of the yr, the share of loans with late cost amounted to three.2% of the whole mortgage portfolio of banks. Nevertheless, the quantity of overdue mortgage debt elevated by 58%: from 83 to 132 billion rubles. At the moment, the share of overdue debt is a bit more than 4% of the whole mortgage loan debt.

2014: Mortgage surpassed money loans for the primary time

In December 2014, banks issued mortgages value 227.6 billion rubles, surpassing unsecured lending (225 billion rubles) on this indicator, follows from an analytical report by the consulting firm Frank RG. A yr earlier, in December 2013, the issuance of mortgages lagged behind shopper loans twice – 184 billion and 383 billion rubles. respectively.

“Banks are squeezing dangerous unsecured lending,” explains Frank RG CEO Yuri Gribanov. The tendency to lag retail lending from mortgages was manifested, in line with him, in the summertime of 2014.

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Mortgage within the USSR

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