Putin has decided not to freeze construction due coronavirus developers will save the economy

“do Not freeze”: so, Vladimir Putin responded to the appeal of developers of the Moscow region complained to the government to stop the construction. According to him, the work on construction projects can continue at observance sanitary-epidemiological requirements. Among the main support measures of the sector the President said the resumption of the state program of subsidizing of a mortgage: the rate for citizens on housing loans will be 6.5%. On these terms in Moscow and St. Petersburg you can buy an apartment worth 8 million rubles, and in the regions – up to 3 million.

New reality era coronavirus: the President had to live to carry the meeting to support the construction industry. Such need, according to GDP, has arisen in connection with the “dirceu graphics” and the approach of the event (as subsequently it turned out it was a call to XI Jinping), which cannot be postponed. “Mr. Belousov, you think?”- Putin asked permission from the first Deputy Prime Minister Andrey Belousov. “Whatever you say, Mr President!” agreed on the video slightly startled official. In the end, the problems of the developers, the participants returned in the evening. As the President said, the authorities impose on the industry a lot of hope. It is the construction site, according to him, in the recovery phase of the economy should be the engine of growth, which drags and other sectors.

Putin has said that imposing restrictions due to the spread of the coronavirus, governors must take into account the specifics of construction, the need for continuous operation. “Can not slow down the construction, not to freeze objects!” the President said, asking the heads of regions to take flexible decisions and find a balance of interests. To work on construction sites, in his words, it is possible to fulfill the requirements of occupational safety and health protection of construction workers. The developers of the Moscow region, where construction projects are frozen since April 13 in a strange time, asked the Federal government to assist in the resumption of work. Otherwise there will be “extremely negative economic and social consequences” not only for builders but also for their subcontractors, in particular, steel companies have warned they are in their appeal to the Prime Minister mishustina.

Directly at the meeting the builders also complained about the costs they incur in connection with the freezing of construction projects. In particular, the company “PEAK” was forced to send home and the dorms are 50 thousand people, the contents of which cost 800 million rubles the income of the developers drop: sales fell by 65% as compared to March, and by the end of the month, the decline may target bar 70%. Industry representatives asked Vladimir Putin to return to the already proven during previous crises measuresam support. In particular, in 2008, construction companies were given state guarantees on loans. And in 2015 there was a program to subsidize mortgage rates at the expense of the budget. “It really helped us and gave to stop. And the current situation demand is worse than it was then,” said the meeting, stressing that the crisis rate of 9% per annum becomes unaffordable for most borrowers.

Vladimir Putin said that he agreed with the suggestions of industry representatives. The government will launch a program of preferential mortgage for the purchase of new homes valued up to 8 million rubles in Moscow and St. Petersburg and 3 million rubles in other regions. “Citizens interest rate on such loans will be 6.5%, everything above is subsidized by the state”, – said the President, adding that these conditions will be in effect the entire term of the loan. However, to apply for such a mortgage is possible only until 1 November of the current year. Recall that the previous program of subsidized interest rates was more protracted and acted from March 2015 to 1 January 2017.

Also, the state is ready to subsidize interest rates on loans received by construction companies. Ng they must commit themselves to keep the employment and in time to complete the construction of homes, scheduled to be commissioned in 2020-2021 years. “We need to avoid protracted. People should be confident that their apartment will be built with quality in time”, – said Putin. 50 billion rubles, he said, will be the state guarantees the HOUSE.Of the Russian Federation, which is headed by Vitaly Mutko. Corporation responsible for the development of housing, will be able to take these loans and for these funds to acquire housing comfort class, thereby supporting developers. In the future these apartments will be sold to citizens, including in the framework of our preferential mortgage programs, Putin said.

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