OREANDA-NEWS. JSCB Soyuz has been included in the list of authorized banks in the mortgage lending incentive program, implemented by the Agency for Housing Mortgage Lending (AHML).

JSCB Soyuz became a participant of the AHML Stimulus program aimed at stimulating lending (loans issuing) for the construction and acquisition of housing. Vneshekonombank allocated 40 billion roubles for its implementation. The initiative was launched in 2010, and will run at least until the end of 2013. Today there are 75 banks participating in the program. The initiative covers housing construction projects that can be put into operation before 31 December 2015.

Currently, Soyuz is selecting developers and housing construction projects to cooperate under the Stimulus program. The initiative has involved 74 major Russian banks, including Gazprombank, MDM, Promsvyazbank, etc. The total funding for projects under construction (including VEB’s funds) has already amounted to more than 60 billion rubles. Since 2010, 2.2 million sq. m of residential premises have been commissioned under the Stimulus program. In total, the program have included 266 housing construction projects, total area: 6.2 million sq. m. Presently, 45 projects in 25 Russian regions are pending before AHML totaling more than 11.7 billion rubles, with residential premises construction area of 0.68 million sq. m in total.

The AHML Stimulus program is designed to reduce the individuals’ costs of purchase and construction of housing under mortgage programs, and to reduce the risks of real estate developers and banks implementing these projects. A procedure for redemption of unsold housing is also introduced within the initiative, where the sale may be secured by regional AHML operators, the RHD Foundation, and the developers themselves. Such a measure is also aimed to minimize the risks for entities participating in the initiative.

In accordance with the general provisions of the program, the combined use of its tools is designed to ensure the increase in the liquidity of long-term assets, to provide confidence by protecting against interest rate risks, to help organize funding for the construction and mortgage programs implementation period, as well as to form the basis for maturity and repayment of loans to developers.

Oleg Mozgunov, Deputy Chairman of the Board of JSCB Soyuz:

- Our bank’s joining the AHML Stimulus program shows the confidence of the public authorities in Soyuz while implementing the initiative to improve housing availability in Russia. We believe that participation in this program will allow us to expand the range of banking services and provide an opportunity to minimize the risks and costs associated with mortgage products offered by the bank.