The head of the Central Bank, Elvira Nabiullina, opposed the expansion of concessional loan programs in Russia. She made this statement during SPIEF, socialbites.ca correspondent reported. Nabiullina explained that if this scenario occurs, loan interest rates will rise.
“I am not calling for the expansion of preferential programs, on the contrary, because if we expand them, our rates will be high,” Nabiullina emphasized.
Last year, the Central Bank increased the policy rate five times to 16 percent in December. It has subsequently retained this level three times. Following the increases in key interest rates, Russian banks increased loan rates. If the key interest rate increases by a similar amount, banks increase loan rates. For example, if the Central Bank increases the interest rate by 1 point, banks also increase the lending interest by 1 point. or slightly higher. According to Sravni.ru, PSK for a mortgage (the total cost of the loan taking into account commissions and all payments) now reaches 27% from 14%.
Preferential mortgage loan programs have been operating in Russia since 2018. There are 5-6 percent family mortgages, 5 percent IT mortgages and Far East and Arctic mortgages. Privileged mortgage application was launched in 2020; currently the rate is 8%. As of July 1, the application of privileged mortgages will end.
Previously Governor of the Central Bank reportedHe said that Russians put 10 trillion rubles on deposits in 2024, and the volume of household deposits increased by 25% during the year.
Previously Nabiullina clarified Main duties of the Central Bank until 2030.
What are you thinking?
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.