Leanid Zaika: Mortgage Loans Will Make Bankers Rich

There are three organized business groups in Belarus.

The Minister of Architecture and Construction of Belarus Anatol Chorny says that mortgage lending can start working within a year in Belarus.

Economist Leanid Zaika told Radio Racyja about who would make profit on mortgage loans, and whether they enjoyed the latest demand:

- Mortgage loan is a great thing to make our bankers rich. Still they are not so rich, they have a profit rate of only 35 percent.

In general, for today there are three organized business groups in the Belarusian conditions.

The first is officials who distribute not easily available land, and the land for some reason is in short supply in Belarus. The second group is the banking nomenclature. And the third is a construction group.

When Vyachyslau Kebich was the prime minister, over 70 percent of money for housing construction was personal savings of citizens and only partially - money of enterprises.

Then everything turned upside down. Up to 90 percent of housing loans were issued by banks. Loans were issued at very low interest, many of those who were close to the nomenclature took advantage of it. Houses which are now sold for a million dollars were built at a low price. And as soon as the state stopped giving money for subsidized housing, it was decided to use mortgage loans.

- How will Belarusians treat the mortgage lending? Will it be popular?

- I would better think twice before making a decision to use such a loan. And consider whether it is worth taking at all.

I think that the need of housing for Belarusians is much of social not an economic nature. First people try to build a house/apartment and then they count their money. Such kind of people will use a mortgage loan.

But, first of all, one needs to find a well-paid job and then make plans for an apartment. Unfortunately, it this regard the consciousness of Belarusians is deformed a little.