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The Central Bank Governor updated the President on financing in the construction industry, in particular, facilitating the use of people’s money for housing construction through escrow accounts, as well as the macroeconomic situation in the country.

Elvira Nabiullina spoke in detail about the adoption of a new system based on escrow accounts and project financing and the problems this has created for banks and developers. Working together with the Construction Ministry and the Integrated Housing Development Institution DOM.RF, the Central Bank has prepared recommendations for interaction procedures between banks and developers. The Central Bank is routinely monitoring this sphere and posts available information on its website every month.

Elvira Nabiullina said that the escrow accounts had attracted some 35 billion rubles and that over 340 loan agreements worth more than 300 billion rubles had been signed with developers.

The Central Bank Governor noted that this system, despite some problems, had increased transparency in the construction industry and the flow of funds. Most importantly, it serves to protect the rights of housing equity holders.

Vladimir Putin pointed out the importance of coordinating this project, which involves financial institutions and developers. The local authorities are to provide the infrastructure necessary for housing projects, while the regional authorities and the federal Government should support them. In particular, the regions need financial assistance to deal with these issues.

As for the financial situation and macroeconomics, the Central Bank Governor reported that the national banking system is stable, and has sufficient capital and liquidity to increase lending and support economic growth.

She added that lending in the economy had increased in the first eight months of 2019 by 9.8 percent year on year. Not only consumer loans but also lending in the real economy sector has increased. The growth rate is 5 percent. Overall, lending is supporting the economy. Regarding macroeconomic stability, inflation is close to the target figure set by the Central Bank.