VTB noted the negative impact on the work of financial organizations of stricter government requirements for the issuance of preferential mortgages. After the measures taken earlier by the Ministry of Finance, the programs were no longer profitable for the banks.

VTB criticized government measures to “cool down” the mortgage loan market

In early December, the Ministry of Finance developed a list of measures designed to reduce the risks of overheating in the housing loan market. Such measures include increasing the down payment to 30% and reducing subsidies by 0.5 percentage points. for all state programs, reduce the minimum loan amount for Moscow, St. Petersburg, the Leningrad Region and the Moscow Region from 12 million rubles to 6 million rubles (as in other regions). The new rules came into effect on December 23.

“In the context of the government reducing subsidies by 0.5 percentage points. According to all state programs, since the end of 2023, the issuance of preferential mortgages has become de facto unprofitable for banks. Our profitability on them in recent months was already close to zero and since December 23 it has become negative. The situation is similar for other major players,” said Georgy Gorshkov, chairman of the board of directors of VTB, quoted by TASS.

VTB calls for the return of 1 pp in a subsidy that will make the market more predictable, notes Gorshkov. The credit institution also proposes to make state-supported mortgages more accessible to “social categories of the population.”

Gorshkov stressed that, under the created conditions, Russian banks are faced with a choice: to completely reject preferential mortgages or to reach an agreement with accredited developers.

“VTB cooperates with the vast majority of developers in Russia. Our partners are thousands of companies across the country, including the largest developers. The vast majority of them declared their willingness to work in new conditions, we are in constant contact with all companies. The main thing is that we maintain a wide selection of properties for borrowers,” said the president of the board of directors.

Previously, at the end of December, the FAS began to receive complaints against large Russian banks for the introduction of a commission for promoters. Thus, the lender grants a loan for the purchase of a home only to the bank’s members (who pay a commission).

The day before, the Central Bank criticized the new methods of credit institutions to collect commissions, pointing out risks for competition. The regulator expressed fear that developers would transfer the commission to the cost of the home.

Gorshkov, in turn, noted that the bank understands the Central Bank’s desire to “cool down” the credit market, including the mortgage market.

“However, all changes should be more fluid and predictable for participants. These objectives can be achieved with other regulatory instruments of state programs,” concluded the president of the VTB board of directors.


Natalia Gormaleva

Source: RB

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