CBR: Mortgage Market Overheating Risks on the Decline

LOCAL NEWS

• CBR says risk of overheating in the mortgage market have decreased due to the change in conditions of the state program "6.5" for new buildings and tightening regulations for loan issuance since the start of August.
  • Regulator says the volume of loans with an initial payment of less than 20% and a debt load of more than 50% amounted to about 20% in issuances in 2Q21 - resulting in 7% rise in housing prices. Regulator now expects this to nomalise with the new policy
• Lavrov says the West is already trying to influence the result of the upcoming Duma election (17-19 Sept) in Russia by questioning its legitimacy. Notes previous occasions were noted, but "this time is more vivid."
  • Lavrov says Russia is ready to cultivate ties with the US, EU & NATO on the principle of equality, mutual respect & balance of interests – but nobody can dictate terms to Moscow
• Russia is nearing completion of a 15Y, 4.5bn cubic meter gas transit deal through Hungary that would almost entirely skirt Ukraine (75%), depriving it of valuable transit fees
• Ministry of Industry and Trade sees no prerequisites for extending export duties on non-ferrous metals and ferrous metallurgy in 2022 due to a decline in prices as the market cools down. Notes, however, that there are uncertainties in the development of the economy and Covid-19