В.Путин.6 Ежегодная большая пресс-конференция (Putin) Part 9

6 Annual Big Press Conference Part 9 February 1,2007 President of Russia V.Putin Round Hall,the Kremlin,Moscow With regards to the financial resources that we have foreseen for the development of Vladivostok and the Primorye region, I am confident that we made the correct decisions. We know about the Far Easts problems and, first and foremost, these are connected with tariffs for transportation and electricity. I very much expect and the cabinet has made the corresponding order that the cabinet will think intensively and make certain decisions, even if they are not necessarily market-based. Because today I think that we need to make certain, even non-market oriented, decisions so that the life of our citizens in the Far East, in eastern Siberia, does not differ with the level or quality of life of people living in the European part of Russia. We can and must do this. But it seems to me that these investment projects, these stimuli for development, and using occasions such as the APEC summit represent good opportunities. As I already said, this will amount to approximately 100 billion rubles. This includes the recreational and leisure zones on Russkii island, developing the water supply system, sewerage, energy, airports, and constructing roads. And in my opinion, along with all this we are planning developments in a bay that you know, on the coast I think that its name is Patrokl. We are planning to engage in housing construction to provide for the needs of the Vladivostok garrison and perhaps even the servicemen from the whole Primorye region, and in part for the city (248 hectares of land have already been given up by the military). Of course we must do this while taking into account environmental requirements, because this place is unique. I saw how many forests there are and the ocean, and we can make this place very beautiful: a new, pretty housing complex for the city. VIACHESLAV TEREKHOV (Interfax): Hello. A question on a painful subject, on mortgages. But before I ask you my question I would like to say that today you will certainly congratulate Boris Nikolaevich Yeltsin on his birthday, and please give him greetings and best wishes from journalists, or at least from those who have worked with him all these years. Here is my question. You know the saying: Do I have rights? Yes, of course. Does that mean I can? Not in the least! This is a partial illustration of the mortgage situation. I know it through my personal painful experience and that of my relatives. You can only take out a mortgage at eleven percent for an apartment that is already ready or which has a building contract. This implies that the apartment is already very expensive. It is impossible to take out a mortgage at the very outset, when the apartment is one-and-a-half- or two-times cheaper. Banks do not give mortgages on these conditions. People say that there is a problem with the legislation. Is this really a legislative problem or is it simply the officials I wouldnt want to say corruption but perhaps the problem of something being overlooked? VLADIMIR PUTIN: No, this simply reflects the realities of Russias economy today. First of all, mortgages were more expensive and shorter just a little while ago and today they have become both cheaper and longer. You said eleven percent. Well, if you think about just the economic situation, can the mortgage be cheaper if inflation in Russia was nine percent last year? Nine percent inflation implies that mortgages cannot be lower than ten or eleven percent. And therefore what is the main conclusion? If we strengthen the economy and bring inflation down to the level I mentioned, to four or five percent, then mortgages will be five or six percent, be longer, and money will also last longer. What are possible solutions today? For some people not all but some categories of citizens for young families in rural areas, for servicemen, and for several other categories, there are preferential rates for taking out mortgages. These are already working quite effectively in rural areas: money is allocated both from the federal and regional budgets for these purposes. As you know, a special mortgage system has been created for servicemen and it will entirely be paid by the state. Incidentally, this year the first 200 officers, 200 young lieutenants, should already have occupied the apartments they received through the mortgage system. Well see how this works. VIACHESLAV TEREKHOV: But they dont give mortgages from the outset, for simply cheaper apartments. I am not talking about rates, they only give it with the building contract, in other words only with a ready apartment VLADIMIR PUTIN: This implies that banks do not only want to earn money but they also want to protect themselves from certain risks connected with possibly unfinished or long-term construction.