Limits Redistributed as Part of the Program of Vnesheconombank’s Investments in Affordable Housing Construction and Mortgage Lending Projects

In accordance with applications received from participants in the Program of Vnesheconombank’s Investments in Affordable Housing Construction and Mortgage Lending in 2010-2013, Vnesheconombank’s Board made a decision to redistribute limits from OJSC Housing Mortgage Lending Agency (OJSC HMLA) and Novikobank to VTB24 as part of the Program. Under this decision VTB24’s share will be increased by 12.1 billion rubles through diminishing HMLA’s participation share in the Program by 10 billion rubles and Novikobank’s participation share – by 2.1 billion rubles. Given the changes, OJSC HMLA’s limit in the Program will amount to 15 billion rubles and Novikombank’s limit will reduce to 0.6 billion rubles and VTB24’s limit will increase to 35.1 billion rubles.

According to OJSC HMLA Executive Director  Natalia Kolzova, the Agency as a government institution of mortgage lending development believes that its main objective is to develop mortgage lending through creating favorable conditions for extending mortgage credits and above all by market players. In the case that Vnesheconombank Program is short of earlier stated limits the Agency deems it right to transfer a part of its limit in favor of the market.

HMLA’s partners started to extend mortgage credits  under the Program “Novostroika” (the New Housing Construction Project) subject to  requirements of Vnesheconombank’s Program in April of 2010. As of June1, 2012, under the Program, OJSC HMLA refinanced mortgage credits for an amount of 10 billion rubles. In late 2011, a securitization transaction worth 3.8 billion rubles was conducted. Another securitization transaction is scheduled to be conducted under the Program

Vnesheconombank welcomes the decision made by OJSC HMLA said Director of the Trust Management Department Alexandr Popov - the Agency is Vnesheconombank’s main partner in developing and implementing the Program. The Agency’s and Novikombank’s decision is a very balanced and responsible one and it is highly instrumental in implementing Vnesheconombank’s Program designed to provide support for the mortgage lending market.

VTB24 was the first to start extending mortgage credits under the Government Support Program on June 1, 2010. As of 2012, the amount of mortgage and housing credits extended was more than 33.6 billion rubles exceeding significantly VTB24’s participation share of 23 billion rubles. More than 230000 Russian families received mortgage credits. VTB24 plans to issue mortgage-backed shares for the second time in September of 2012.

The redistribution of limits in favor of VTB24 is undoubtedly a socially responsible decision made in the interests of many Russian families which receive access to government support measures to improve their living conditions said VTB2 Deputy Board Director Anatoly Pechatnikov.

With due regard to the tight implementation schedule of the Program effective till late 2013, Vnesheconombank offers other participants in the program to analyze  available amounts of applications taking into account  the market conditions  in order to increase the limits of the Program’s most active participants.

The State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ was established in 2007 through a reorganization of Vnesheconombank of the USSR and acts in accordance with the Russian Federal Law 'On Bank for Development'.  The Bank's activity is designed overcome economic growth infrastructure limitations, modernize and boost the non-raw materials economy and high-technology industries as well as to encourage innovations, infrastructure development and the export of high-tech products, and to provide support for small and medium-sized enterprises. In order to encourage mortgage lending and expand general public’s access to it, Vnesheconombank is implementing the Program of Vnesheconombank’s Investments in Affordable Housing Construction and Mortgage Lending in 2010-2013. Under the program a decision was made to invest funds in the total amount of 250 billion rubles.

OJSC Housing Mortgage Lending Agency (HMLA) was established by the Russian Government in September of 1997 in the form of open joint stock company 100% owned by the state. The Agency’s activity is designed to pursue the state’s policy aimed at providing affordable housing, developing federal system of housing mortgage lending in Russia, raising investments for the housing mortgage lending sector. The main objective of HMLA is to ensure liquidity of Russian commercial banks responsible for extending long-term mortgage housing credits to natural entities through purchasing rights of claim under such credits by way of placing bonds on the Russian stock market. Since it started operating, the Agency has refinanced about 270 thousand mortgage credits worth more than 260 billion rubles as of June 1, 2012.

Press Office of Vnesheconombank
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21-34
E-mail: press@veb.ru

HMLA Public Relations Directorate
17418 Moscow, Novocheremushkinskaya street, 69-B
Phone: (495) 775-47-40
e-mail: pr@ahml.ru

VTB24 Press Office
Moscow, Myasnitskaya street, 35
Phone: + +7 495 980-46-59
e-mail: press@vtb24.ru