OREANDA-NEWS. December 24, 2010. Vnesheconombank’s Supervisory Board has approved a concept for affordable housing construction (the minutes of meeting № 22 dated December 7, 2010). The concept provides for refinancing credits extended to economy-class housing developers at an interest rate of no more than 10% per annum by credit institutions participating in the Program of Vnesheconombank’s Investments in Affordable Housing Construction and Mortgage Lending (hereinafter referred to as the Program) at a rate of 3% per annum for a period of up to December 31, 2013 in the amount of no more than one third of funds to be extended by a credit institution as part of the Program’s implementation.

Vnesheconombank might refinance credits, which meet the following requirements:
credits were extended for economy-class housing construction (as defined by the Russian Regional Development Ministry’s methods);
a lending rate for developers does not exceed 10% per annum in the absence of any additional commissions in favor of creditor;
credits were extended with regard to the projects included by the Russian Regional Development Ministry in the Russian constituent entities’ economy-class housing construction programs with a guaranteed date of commissioning facilities that makes it possible to securitize appropriate mortgage credits under the Program.

Vnesheconombank’s Supervisory Board instructed Vnesheconombank’s Management Board in partnership with the Russian Regional Development Ministry, the Housing Mortgage Lending Agency (Ltd) and credit institutions to work out the procedure for refinancing credit institutions involved in lending to economy-class housing developers.