MOSCOW DEVELOPERS WILL GET HELP WITH TRANSITION TO ESCROW ACCOUNT
The system of financing construction projects through escrow accounts is aimed at solving the problems of deceived co-investors. However, not all developers will be able to work effectively in the new environment. In Moscow, developers are being supported during the transition period, Marat Khusnullin, deputy mayor of Moscow for urban planning and construction, said in an interview with Rossiyskaya Gazeta.
“One of the key reasons for the occurrence of defrauded co-investors is the lack of professionalism of developers: an incorrect assessment of the economics of processes, the inability to work with the currently complex legislation. A new system of working with co-investors with money is trying to insure people against such mistakes of developers, ”said Marat Khusnullin.
In this case, the deputy mayor believes that not all developers will be able to work effectively in the new environment. “Some may not take the banks themselves. Trying to prevent such a development of events, we created a headquarters and, together with the banks, we inspect all the developers of Moscow without exception, we watch their reports. We can cope with this, of course, ”added Marat Khusnullin.
As reported, the Russian Federation is implementing a phase-out plan for shared construction. From July 1, 2019, Russian developers will be required to work on escrow accounts, in which citizens will accumulate funds. Construction companies will not be able to use this money until the completion of the work; banks will lend them. At the same time, developers will be able to complete part of the projects already started by the old rules of financing.
Source: Construction complex website