27 November 2003 09:43
RUSSIA TO FORM HOME-LOAN MARKET PARTICIPANTS ASSOCIATION
MOSCOW. Nov 27 (Interfax) - Gosstroi, the Russian State Construction Committee, plans to form a National Association
of Home Loan Market Participants early 2004 in a bid to reduce the cost of housing for ordinary Russians.
The association will make home loans more accessible, establish insurance guarantees and open up the construction
market, Nikolai Koshman, the head of Gosstroi, said.
We need to break the psychology where builders charge a lot for housing because this is profitable for them, Koshman
said.
He also said the Central Bank ought to come up with a set of basic guidelines for monitoring the quality of home-loan
portfolios and interest-related risk at banks.
He said the CB needs to be guided by today's international practices, and cater for such parameters as the
relation between the principal loan to the collateral, and principal loan to the concentration of risk, particularly
interest-related risk.
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