(Reuters) – Prime Minister Mikhail Mishustin signed a decree cutting the state-backed mortgage rate and extending the program, which is part of a wider plan to boost the economy.
Russia is having a hard time dealing with the consequences of Western sanctions over what Russia calls a “special military operation” in Ukraine.
People in Russia have been building a lot because of a government-backed mortgage programme that was set to end on July 1. The program will now run until the end of 2022, and the rate will be cut to 9% from 12%, the government said on Sunday.
People in Russia will be able to afford more affordable homes, the government said in a statement.
If the central bank’s predictions are correct, the Russian economy will shrink by 8–10 percent this year. On Friday, it cut its main interest rate from 14 percent to 14 percent, which was more than the bank had expected to do.
