Sberbank, Russia's largest bank, anticipates a significant drop in mortgage issuance this year due to soaring interest rates and the conclusion of a preferential loan program. The Russian Central Bank recently raised interest rates to 21%, the highest in over two decades, to combat persistent inflation driven by a weak ruble, strong government spending, and robust consumer demand.
In 2023, Sberbank issued a record 4.7 trillion rubles in mortgages. However, CEO German Gref announced at a Moscow forum that the bank expects to issue only 2.6 trillion rubles in mortgages this year. The rising interest rates and the end of the preferential loan program, which previously allowed some families to secure mortgages at lower rates, are reducing demand for mortgages, according to Kirill Tsarev, Sberbank's First Deputy Chairman.
