By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. August 6, 2024. Article no 1143

From August 6, VTB Bank (MOEX: VTBR) will raise rates from 0.5 p.p. to 1.7 p.p. on market mortgage programs. The minimum rate will be 20.5%. The Russian bank explained this decision by the increase of the key rate of the Central Bank on July 26.

The borrower will be able to get the minimum rate if he takes a large loan amount, makes a down payment of 30% or more and is a payroll client. Borrowers with applications approved before August 5 will be able to use the previously valid conditions until August 16 inclusive.

The VTB bank will leave the rates on state programs unchanged.

“We do not rule out that in the near future other players will make changes to their mortgage programs, as a result of which the average rates on market mortgages will exceed 20%,” the press service of VTB said.

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On July 26, the Bank of Russia raised the key rate from 16% to 18% in order to cool credit demand and reduce inflation. The overheating of the Russian economy, which arose, among other things, due to a shortage of labor and production capacity, is considered by the Central Bank to be the highest since 2008.

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© Copyright 2024 – Eurasia Business News. Article No. 1143.