Russia is easing capital controls

[andrewfi]

https://www.zerohedge.com/markets/bank-russia-eases-more-capital-controls-allowing-euro-usd-withdraws

As the banking sector and FX markets are stabilising in Russia capital controls that made it impossible to legally buy and sell dollars are being reduced.

It's not a free for all but will make life easier for many.

Central Bank interest rates are now down 3% to 17%.
Does anyone know what the typical rates are for credit card debt and mortgages in Russia? I have not bothered to check but intuition suggests that credit card rates probably have a much smaller spread than is typical in, for example, the UK.

[2tallbill]

Does anyone know what the typical rates are for credit card debt and mortgages in
Russia? I have not bothered to check but intuition suggests that credit card rates
probably have a much smaller spread than is typical in, for example, the UK.

Credit was approximately 10% before the war and the National bank raised it
to 20% which is a pretty radical jump but it stopped the slide on the Ruble in
it's tracks. Backing off 3% is good idea in my view to help keep the economy
chugging along.

Udachi!

Bill

[Gipsy]

https://www.zerohedge.com/markets/bank-russia-eases-more-capital-controls-allowing-euro-usd-withdraws

As the banking sector and FX markets are stabilising in Russia capital controls that made it impossible to legally buy and sell dollars are being reduced.

It's not a free for all but will make life easier for many.

Central Bank interest rates are now down 3% to 17%.
Does anyone know what the typical rates are for credit card debt and mortgages in Russia? I have not bothered to check but intuition suggests that credit card rates probably have a much smaller spread than is typical in, for example, the UK.

Up to yesterday...
Mortgage, 28% and upwards..
Credit cards, older issued, fixed rate 16% upwards, newer cards flexible rates, 50% upwards, some, 100% (Not good credit rated persons)..
Bank savings, 18% fixed for 3 months ..Special account..
Savings 4-7% Standard account..

[andrewfi]

Coo! The card rates are wicked! I don't know about other places than the UK but I'm still surfing zero rate interest cards.

I'd expected to be seeing around 30% on cards, still high but the numbers you shared are wicked!

Is the government doing something about mortgage rates? I seem to recall seeing something about them giving some kind of support?

[Gipsy]

Coo! The card rates are wicked! I don't know about other places than the UK but I'm still surfing zero rate interest cards.

I'd expected to be seeing around 30% on cards, still high but the numbers you shared are wicked!

Is the government doing something about mortgage rates? I seem to recall seeing something about them giving some kind of support?

The housing market is dead at this time, with cash purchases the exception..
There are many different kinds of support covering government employees, military personnel, specialist professions, doctors and teachers, and families with 2 or more children U18 with purchase and mortgage for houses/apartments..
It would be pages of writing to explain them all and the rules/regulations thereof..
The gov are now bringing in flexi mortgages, whereby, re-mortgage for a lower rate is on the cards, this previously was not offered as the rate of interest set at commencement of the loan is fixed for the duration of the loan, i.e. 25yrs/8%..
But to give you a little more info, a family of 3 children, purchase an apartment, they should get a rate of about 7-9% dependent on various situations within their family and working lives..
Add to this, for the first child, they receive a voucher worth just over 500,000r, for the second and 3rd child, its 650,000r, these vouchers can be used to buy a property, or put to a current mortgage, or against a new purchase of a property..
The majority of large companies in Russia, offer mortgage interest help for employees, some paying all the said interest on the monthly payments, which is why repayments are equalised over the loan period, rather than a front loaded loan common in the UK..
Another help, directly from the gov, is tax relief, this is on the first 2m of the purchase price, and is claimed by the individuals annually, and is worth 250,000r in total, iow, the individual pay tax on his/her monthly salary, and at the end of the financial year, they claim back all tax paid, this continues annually until the whole amount is reclaimed, i.e. 50,000pa paid and reclaimed, 5yre can be claimed.... this is only for the first purchased property, it is once in a lifetime..
It should be remembered that after the fall of the USSR, everyone had the right to claim the place of residence as their own FOC...
There is so much more, but I hope that this helps you to understand about some things in the life of everyday Russia..

[andrewfi]

Gipsy, thanks for the explanation.

So, for a large number of people the high mortgage rates are not as scary as they'd be for somebody in the UK.

I assume that the 'free' housing at the end of the Soviet Union has also served to help families out since.

I know of one guy and he is far from alone here, who, in his early 30s, has leveraged the opportunity presented by older generation relatives to acquire properties such that he and his immediate family are comfortably set for the rest of their lives in housing terms.

Also, I'd expect that properties are available to buy at similar prices to some found here. I visited a friend in her apartment in a small city about 90 minutes from here. A 40m2 place, renovated to Euro standard cost her €4000. An unremonted place in the same building was just €2500.

I confess, I thought about buying one as a bolt hole. The area is quiet but has everything one needs and is in a very pleasant location.

Of course in bigger cities, nice places are much more costly and less affordable.

[Manny]

Also, I'd expect that properties are available to buy at similar prices to some found here. I visited a friend in her apartment in a small city about 90 minutes from here. A 40m2 place, renovated to Euro standard cost her €4000. An unremonted place in the same building was just €2500.

Is there a zero missing there?

[andrewfi]

You'd think so, but no.

Remember, a few years ago, apartments were being given away for free in some areas.

[Texan77]

Gipsy, thanks for the explanation.

So, for a large number of people the high mortgage rates are not as scary as they'd be for somebody in the UK.

I assume that the 'free' housing at the end of the Soviet Union has also served to help families out since.

I know of one guy and he is far from alone here, who, in his early 30s, has leveraged the opportunity presented by older generation relatives to acquire properties such that he and his immediate family are comfortably set for the rest of their lives in housing terms.

Also, I'd expect that properties are available to buy at similar prices to some found here. I visited a friend in her apartment in a small city about 90 minutes from here. A 40m2 place, renovated to Euro standard cost her €4000. An unremonted place in the same building was just €2500.

I confess, I thought about buying one as a bolt hole. The area is quiet but has everything one needs and is in a very pleasant location.

Of course in bigger cities, nice places are much more costly and less affordable.

I have no knowledge since the war started but nothing I could find in Ukraine was that cheap except stuff unfit to live in.

[AJ]

You'd think so, but no.

Remember, a few years ago, apartments were being given away for free in some areas.

What was driving that in that region?

[Manny]

You'd think so, but no.

Remember, a few years ago, apartments were being given away for free in some areas.

Mine was 1.5m Kroons at the time. Apples and oranges I know, but still. You'd be better off buying one off they are that cheap somewhere there.

[andrewfi]

You'd think so, but no.

Remember, a few years ago, apartments were being given away for free in some areas.

Mine was 1.5m Kroons at the time. Apples and oranges I know, but still. You'd be better off buying one off they are that cheap somewhere there.

It is unlikely to be any good as an investment. And I don't have a need for a bolthole. But the idea of having an apartment at that kind of price is kind of appealing 'just because!'