... downturn. This includes the cessation of further rate hikes, with plans to lower rates as early as 2020. While this measure is currently viewed as a one-time action, there is potential for subsequent reductions. This creates favorable conditions for lending. The lower the rate, the lesser the chances of defaults, leading to increased demand for loans. This in turn stimulates industrial production, healthcare, technology, and other sectors, resulting in higher budget revenues—a positive shift for ...

... conditions, borrowers are keen to secure a mortgage to lock in the current rate, fearing that future terms may become less favorable. 4. Government Support for Mortgages and Special Programs The Russian government has implemented a number of subsidized lending programs, particularly for families with children, making mortgages accessible despite high rates. For instance, the "Family Mortgage" program allows families with children born after 2018 to obtain loans at a reduced rate starting from ...

... opportunity to continue developing. If the new bank leader alters this policy, it could negatively impact the economy while simultaneously sparking a wave of protests. The only beneficiaries of such a softening would be European banks that profit from lending. Furthermore, moves away from negative interest rates may positively affect the euro's exchange rate. Brexit. The U.K.'s exit from the European Union will have painful consequences for all involved. The government is making efforts to mitigate ...

... unaffordable for many borrowers. Why Have Major Banks Suspended Family Mortgage Issuance? The Impact of the Key Rate Increase. The recent hike in the key rate to 21% places significant pressure on the financial sector. Banks are compelled to reevaluate their lending conditions since long-term loans become riskier for financial institutions in a high-interest-rate environment. Increased Risks for Banks. In times of economic uncertainty, banks fear a rise in the number of defaults on mortgages. Family mortgages,...

... the issuer pays the bondholder periodic interest (coupon payments). At the end of the term, the principal amount is repaid. Example: At the time of writing, the face value of one "Sber" bond is 1,000 rubles. Purchasing one bond effectively lends this amount to the issuer. With a coupon payment of 37.40 rubles, the investor periodically receives this amount, with repayment of the principal at the bond’s maturity. Benefits of Bonds for Businesses: No Mandatory Collateral: Unlike bank ...