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Russia launches industrial mortgage program

Russia is launching a new type of mortgage instrument – preferential mortgage loans for businesses, Kommersant reports with reference to Russian Prime Minister Mikhail Mishustin.

According to the business daily, the Russian government has drafted a resolution approving the Industrial Mortgage Program, which will give Russian companies an opportunity to take out preferential loans to purchase industrial property. Under this program, businesses will be able to borrow a maximum of RUR 5 mio (over $80K) for up to seven years. Companies in innovative and high-tech industries will enjoy even lower interest rates. This new instrument will help Russian businesses launch the manufacture of the necessary goods faster.

Applications for preferential loans under this program will be approved on a competitive basis; selection will begin as soon as in the next quarter, Deputy Prime Minister and Minister of Industry and Trade Denis Manturov said.

The new type of mortgage program was announced in early summer, after President Vladimir Putin proposed launching it during the St. Petersburg International Economic Forum.

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