EBRD: Russian mortgage is unreliable and inconvenient
22 January 2008Russian legislation is one of the most inconvenient for development of mortgage lending in Europe. To such conclusion came analytics of the European Bank for Reconstruction and Development in the report “Mortgage in transitional economies”.
Authors of the report cleared up compliance of legislation and application of mortgage law in Central and East Europe, and also in CIS countries, including Russia, to requirements of the market.
EBRD formulates ten principles of convenient and effective mortgage legislation. It is mainly its speed, simplicity, cheapness and reliability of market procedures, and also flexibility to adapt to needs of specific participants of the market. Half of the countries mentioned in the report have an effective legal basis for development of the mortgage market.
The only country which has got the mark “many problems” is Russia. Procedures connected to getting of mortgage credits and functioning of corresponding segment of the financial market in Russia are too complicated in comparison with ideal state of affairs and situation in other countries. As consequently, they take too much time.
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