28 January 2013, Monday, 14:21

Volume of mortgage credit lending grows in Bashkiria

author: Elvira Latypova

Substantial growth of housing transactions in 2012 is marked by the Russian State Register Directorate on RB. In particular, according to the head of department Igor Shelyakov, much more acts on mortgage were made past year.

The Association of Credit Organisations RB (AKORB) confirms such tendency, indicating that real volumes of housing loans in the republic exceeds the sum of mortgage  loans as consumer credits are also partially used for these purposes.

“Certain changes are marked both in demand, and in supply,” the chief executive officer of AKORB Eldar Karimov comments on the situation. “The problem of habitation is not solved yet, the demand is high enough. Relative growth of well-being of the population is thus observed. In aggregate these factors push the demand curve upwards. The range of mortgage banking offers extended too.”

Eldar Karimov speaks about prospects of mortgage crediting in 2013 quite conservatively.

“It is a derivative from the general development of economic life,” Eldar Karimov says. “If construction volumes continue their growth, if the economy develops, and population incomes increase, then, certainly, positive trends will remain. Mortgage volumes will grow, but, possibly, not with such high rates. The matter is that the volume of credits granted to individuals, causes concern at the Central Bank in respect of possible increase in number of credits with high risk of non-repayment. While in Bashkortostan the level of overdue loans is less than 3 %, it is normal.