Turmoil in the world markets did not hamper the Russian mortgage subsidiary of MORGAN STANLEY, CITY MORTGAGE BANK (GORODSKOY IPOTECHNY BANK), from cutting credit rates. The bank rolled out more favourable terms at a time, when other banks are forced to turn down even reliable borrowers, experts point out. Most significant cuts were made in credits against the security of real estate. Those who borrowed at 13.5% in roubles and 12.5% in U.S. dollars will now pay a flat rate of 11% for both roubles and foreign currency. The minimum rates at GORODSKOY now begin from 9.0% in U.S. dollars and 10.49% in roubles. This is less than the rates of most rivals. For example, the standards of the Home Credit Agency envisage rates from 10.75% for rouble credits, those of the Russian Mortgage project, launched by the RUSSIAN MORTGAGE BANK and SOBINBANK — from 9.75% in U.S. dollars and 10.75% in roubles. VTB24 lends at 9% in forex and 11% in roubles.
The terms of DELTACREDIT provide for credits at an annual interest, starting from 9.5% in forex and 11% in roubles. There is a special offer of 8.5% and 10%, respectively. The BANK OF MOSCOW is ready to provide loans in Swiss francs at a 7.0% annual interest. GORODSKOY IPOTECHNY BANK claims that it is not just a reduction in rates, but a review of attitude towards forming them, says GORODSKOY president Nikolai Shitov. The bank’s statistics lets it tie credit rates more closely with the risk level.
Source: VEDOMOSTI, September 4, 2007
