Russia's Sberbank cuts mortgage rate to below 9% for selected developers

Russia's Sberbank cuts mortgage rate to below 9% for selected developers
By bne IntelliNews April 21, 2017

Russian state-owned retail bank Sberbank has temporarily cut mortgage rates to below 9%. That is well down on the 12% rate that the government has targeted as a desirable level and offered subsidies on any rate above that level until recently.

Sberbank has temporarily reduced mortgage rates for apartments being built by certain developers to 8.4-8.9%. This assumes a 2-2.5% discount to the basic mortgage rate of 10.5%, part of which is subsidised by the respective developers (up to 1.5%), and part (up to 1%) by Sberbank, VTB Capital reports. 

These rates will be available until the end of May, and only selected developers are eligible, although Sberbank has indicated that there will be more than 200 participating companies across Russia.

Interest rates have been following inflation down, which has been reduced to close to the Central Bank of Russia’s target rate of 4% in the first months  of this year. The CBR cut rates to 9.75% in a surprise decision last month. 

“The news is positive for listed developers, and such a significant cut substantially increase Russians’ ability to take mortgages,” VTB Capital said in a note.

 

 

Data

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss