23 March 2004 21:13
Putin pledges to resolve "anomalous" situation with servicemen`s housing
[Presenter] The aim of the new state saving-and-mortgage credit programme for Russian army officers is to enable them
to obtain a flat after three years of military service and to be its owner straight away. The programme was discussed
long and in detail today at a conference at the Defence Ministry, which was attended by Vladimir Putin. So who is the
army mortgage programme for and how will it work? Petr Ovnov reports. [Passage omitted: preamble]
[Putin, addressing the meeting] The situation which we have is paradoxical: an officer may only count on having a
home of his own once he has left the service. In effect, he faces a conflict of interests: if you want a flat, resign
from the army; if you want to serve, you'll get nothing until you resign or retire. Furthermore, for many people it
takes at least decades to resolve their housing problem. The situation is totally anomalous. Those who give the most to
the state - and those people who choose to serve in the army and the navy proceed from the assumption that under certain
circumstances they are prepared to give even their lives to their country - those who give the state the most receive
the least from it.
I would like to stress a fundamentally important point: worthwhile social provisions for servicemen is no less
important a factor for ensuring defence and security than a combat training programme or the rearmament of the army and
navy.
A man who dedicates his life to military service is entitled to expect that the state should honour its legal
obligations to him clearly and in full.
[Correspondent] As defence Minister Sergey Ivanov pointed out, the difficulty is that at present, with the existing
laws, it is impossible to provide flats quickly for all those who need them. This would take more than 50 years.
One way to solve the problem is the saving-and-mortgage scheme developed by the president's orders. It will
apply to those who are commissioned to officer's rank, those who have been called up to serve from the reserves,
and those who have served three years on contract.
Starting from 2005, the government will transfer R30,000 a year into the serviceman's personal account. As early
as in 2008, servicemen will be able to start buying flats on mortgage, to be paid for by the state. Furthermore, the
downpayment, which constitutes 30 per cent under the [existing] mortgage scheme, is expected to be halved on government
guarantees. The balance, as well as the downpayment, is repaid in full by the state, but only if the cost of the flat
does not exceed the national average, which is R650,000 with a total flooring area of no more that 54 sq.m.
Servicemen will be able to decide for themselves what to do with the savings, when to use them and what flat to buy.
They may pay more to buy better-quality housing, or repay the loan early.
Nonetheless, and Vladimir Putin stressed this today, the flat becomes the serviceman's property immediately
after the downpayment is made.
[Passage omitted]
Having listened attentively to the speeches made by ministers, Vladimir Putin summed up the meeting: further work
needs to be done urgently on the new bill, and it should be sent to the State Duma in May.
Moreover, the new scheme certainly does not mean that the state renounces its earlier obligations to servicemen
relating to housing.
[Putin] The budget plans and budget commitments on provision of housing for servicemen under the existing legislation
will be honoured in full. I very much hope that once additional state funds are allocated to solve the housing problem
for servicemen, we can solve this task and clear the problem.
[Correspondent] In the first instance, the new savings-and-mortgage scheme will only apply to those who have the
status of servicemen. It is not ruled out, however, that in future, depending on the state's actual resources, it
will become available to other categories of the population.
[RTR Russia TV] |
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