2 requirements will apply to banks which keep shared construction funds
The requirements for banks which will keep compensation funds of shared construction projects will not be tough, moreover certain exceptions can be made by decision of the authorities.
Compensation funds will accumulate resources of shared equity construction developers and serve as an instrument for providing compensations for losses or for completion of projects. The Fund must be launched on January 1, 2017. In case a developer fails to fulfill his obligations the fund will compensate the losses for citizens and complete the construction project. AHML (Agency for Housing and Mortgage Lending) will exercise control over the Fund.
Developers will have to allocate to the fund 1% of the planned cost of construction project which is indicated in the project declaration, it must be done before the registration of the contract with the first equity holder.
According to “Interfax”, last week the Ministry of Construction has submitted to the government the draft resolution on the basis of revised agreements on the compensation fund. The document, in particular, prescribes the rules of fund allocation. Money can be invested in government securities, mortgage-backed securities, they can also be allocated on bank deposits. The bank must meet two criteria: at least 25 billion rubles of capital (in Russia there are about fifty banks with this amount of capital) and rating, it has to be no more than three steps inferior to the sovereign.
The government “has the right to make individual decisions” for admission to investment of bank funds in case they do not meet the requirements stated in the draft resolution.