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Who in Russia will the government help pay off their mortgages?
Russian authorities are planning to help rural residents obtain cheap loans to buy houses. Prime Minister Mikhail Mishustin announced at a government meeting that an additional 6.5 billion rubles would be allocated to subsidize rural mortgages and consumer loans. Alexander Tsyganov, head of the insurance and social economics department at the Financial University under the Government of the Russian Federation, notes that cheap loans will reduce the flow of people moving to cities.
In his opening speech, Prime Minister Mishustin emphasized that the development of rural areas and improving the quality of life of people living there are the main priorities for the Russian authorities. This includes the repair and construction of schools, kindergartens, clinics, and the construction of modern and comfortable homes.
"One of the key tools for solving these issues is subsidized lending to people living outside the city. You can take part in the rural mortgage program. The interest rate is up to 3%. Or take advantage of preferential consumer loans for home improvement, including water and gas supply. Over the past four years, more than 160 thousand borrowers have already taken advantage of these opportunities to improve their living conditions," the Prime Minister said.
Mishustin said the government would continue to provide rural residents with access to preferential financing, even as it considers raising the Bank of Russia's base interest rate.
The head of government announced the allocation of an additional 17.5 billion rubles to support preferential lending for at least 24 thousand farmers engaged in the production and processing of agricultural and livestock products. The authorities hope that these measures will increase the financial stability of the agricultural sector, ensure food security in the future and provide citizens with a wide choice of high-quality Russian products.
Support measures for rural residents, including preferential loans and mortgages, are one of the most important tools to help people stay in these areas, says Alexander Tsyganov. It is quite difficult to persuade city dwellers to move to such settlements, but people already living in cities and villages should feel supported. This is what subsidies are aimed at.
Rural mortgages can be issued for the purchase or construction of a house in certain regions, the list of which is agreed upon with the Ministry of Agriculture of the region. The borrower can be someone who works in the city but prefers to live outside the city. Although these people do not work in agricultural enterprises, they also contribute to the development of the village, says Alexander Tsyganov.
"People who work remotely and live in villages somehow invest money in infrastructure development. He pays taxes, goes to the store, uses medical and educational services," explains the interlocutor of URA.RU.