OREANDA-NEWS. April 04, 2013. According to figures of the Russian Federal State Military Mortgage Loan Administration, Sviaz-Bank issued 22.3% of the total loans made to members of the mortgage and savings system to servicemen in 2012.

Sviaz-Bank’s performance under the Military Mortgage program was among the subjects discussed at the press conference on loans given to servicemen to purchase housing on the primary market as an incentive for boosting housing construction in Russia at the RIA Novosti Press Center.

As of January 1, 2013, the Bank had 11.2 billion rubles in its loan portfolio built up under the Military Mortgage program.

The government launched its program of loans to servicemen in 2009, and Sviaz-Bank entered into an agreement with the Federal State Military Mortgage Loan Administration in 2011. Starting out from zero, it has issued a significant amount of loans over the next two years.

“Sviaz-Bank is the leader among Russian banks today for the amount of loans made in 2012 under the government program to provide housing to servicemen. Given the special social significance of greater affordability of housing to servicemen, the Bank issues loans on the easiest possible terms to customers in 52 Russian regions,” said Olga Oleinik, Vice Chair of Sviaz-Bank’s Management Board. “Overall, Sviaz-Bank views mortgage loans as a priority in its business and offers easy terms to socially significant categories of borrowers.”

Until now, over 6,000 servicemen have purchased apartments from loans taken out in Sviaz-Bank.

A mortgage loan made under the Military Mortgage program (operating in the secondary market) has a maximum amount of 2,200,000 rubles repayable within up to 20 years at an interest rate of 9.5% per annum in Russian rubles in the first year and at 10.5% thereafter. The Federal State Military Mortgage Loan Administration makes the down payment for housing to be purchased and services the loan from funds credited to a serviceman’s personal savings account.

Sviaz-Bank has launched yet another program for the benefit of members of the mortgage and savings system to enable them to take out mortgages for purchasing primary market housing (under construction) with funds borrowed from Sviaz-Bank.