Minstroy will help the developers to remain on the market
Minister of Construction and Housing and Public Utilities of the Russian Federation Vladimir Yakushev urged developers who could not switch to project financing to seek help from the Ministry of Construction. He noted that for the high-quality implementation of housing reform, constant interaction between developers, the banking sector and government at all levels is necessary.
“We are ready to consider each specific situation, and if the developer has problems today regarding how they reacted to his application for project financing, we are ready to consider it, connect the Ministry of Construction, and we will connect the bank and the representative of the region”, Vladimir Yakushev said during performances at the Russian Energy Week.
The head of the Ministry of Construction noted that developers with a margin between the cost of construction and the sale of at least 20% can get project financing today.
“There are not many such entities today, the rest have it on the verge or less. Therefore, we need to monitor the situation and prevent the developers working for many years on the market who did not have deceived equity holders, due to their low margins, to leave the market”, Vladimir Yakushev emphasized.
Source: RIA Novosti