Banks accumulate 74 bln rubles on 23,000 escrow accounts -Bank of Russia

TASS Russian News Agency | Nov 13, 2019 at 5:43 PM

MOSCOW, November 13. / TASS /. Russian banks have currently opened 23,000 escrow accounts and accumulated 74 bln rubles on them, said Deputy Chairman of the Central Bank Olga Polyakova at parliamentary hearings in the State Duma.

"23,000 escrow accounts are open, 74 bln rubles have already been accumulated in these accounts. The process is ongoing, and it has intensified after July 1," she said.

The average lending rate for developers with project financing is from 5% to 7%, and in some cases may be less than 1%. The volume of approved credit lines to developers has already exceeded 642 bln rubles, Polyakova noted.

"The number of loans issued already confirms that project financing works for us. Today, the amount of credit lines approved by banks is 642 bln. This figure is almost the same as the amount of loans that was before the transition to project financing. Lending to the construction industry specifically construction of residential real estate," added Polyakova.

Today, out of 94 authorized banks, 37 credit institutions are actively working with escrow accounts, which, according to Polyakova, are sufficient to provide funding for the implementation of the national project "Housing and Urban Environment".

"94 banks are included in the list of authorized banks. I recall that banks that have a corresponding rating of at least BBB-. Today, out of these 94 banks, 37 are actively working with developers, they have confirmed their readiness. And even these 37 banks are quite enough. And the potential for expanding lending to these banks, based on their capital adequacy, is sufficient to provide financing in the amount of 6.4 trillion, as stated in the passport of the national project, "Polyakova said.

In addition, the Bank of Russia noted that developers have adapted to the requirements of credit organizations. "There are practically no complaints from developers in the Central Bank, she said. This suggests that the interaction is in "working mode" and the issues are resolved without bringing them to the level of the Bank of Russia and the Ministry of Construction, said Polyakova.

Since July 1, 2019, Russian developers have lost the opportunity to attract money from equity holders directly. The funds of citizens invested in the purchase of housing will be stored in escrow accounts. Developers will be able to use them only after putting the facility into operation. Construction will be carried out at the expense of bank loans.