‘The year 2005 brought some new players into the banking field and witnessed a wider range of mortgage programs. Since the terms of the payments were prolonged to 25 to 30 years compared to 10 to 15 years in the past, mortgage programs became more available,’ Johann Jonah, Chairman of RaiffeisenBank Austria CJSC, said to UrBC representative.

‘Mortgage loans are only starting to develop regionally, but we think the amount of loans and the money given to clients will increase at least ten times in 2006,’ Mr Jonah said.

‘Regionally, mortgage loans in Russian currency are most demanded, so some more of these will certainly emerge. One of the bank’s main targets for 2006 is mortgage loans for newly-erected buildings, which should result in more apartments being built for the population.’

The bank’s mortgage portfolio for Russia comprised 159 million USD in January 2006 (compared to 89 million a year earlier), which makes up 23% of all private loans. The bank issued $100 million worth of loans in 2005.