Teachers in Russia’s Far East will be able to receive a loan at a minimum rate under the government-backed Far Eastern Mortgage program, VTB board member Svyatoslav Ostrovsky announced at the Eastern Economic Forum (EEF) on Monday.
The mortgage initiative will start on September 15 and be available for state and municipal educational institution employees. It will apply for housing in apartment buildings and semi-detached buildings.
It mainly covers the primary market but will also apply to the secondary market in rural settlements, single-industry towns, and Chukotka Autonomous Region and Magadan Region.
“In changing economic conditions, the task of banks is not just to be providers of preferential government programs, but also to strengthen them with their own projects and initiatives,” Ostrovsky stated, noting the project will be part of the ‘Year of the Teacher and Mentor in Russia.’
The banker noted that the base mortgage rate under the state-backed plan in the Far East is currently 2%.
“We expect that the reduction will be an additional incentive and opportunity for many teachers and education workers to improve their living conditions. This project is a continuation of VTB’s fruitful cooperation with educational institutions in Russia,” he said.
Ostrovsky specified that the down payment must be at least 15%, the maximum loan amount can reach 6 million rubles ($63,000), and the term is up to 20 years.
Since launching the preferential Far Eastern Mortgage program in 2019, VTB has provided more than 10,000 loans in the region valued at over $470 million, of which over $77 million was issued in January-August 2023.
Aimed at boosting population growth in the Far East, the state initiative was designed to last until 2024; however, last year, President Vladimir Putin prolonged it until 2030.
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