The parliamentarians of Petersburg has suggested the state Duma to ban the currency mortgages

Legislative Assembly of St. Petersburg supported the project of the legislative initiative according to which mortgage loans can be provided only in rubles, follows from the document published on the Parliament website. Further, the project will be submitted for consideration to the State Duma.

“Currency credit agreement, loan agreement <…> and the obligations of the borrower which is secured by a mortgage”, according to the bill, should be the Russian ruble. In this case, “the use of foreign currencies” in such contracts “are not allowed”.

The authors of the bill propose to convert all into rubles loans and borrowings, not related to business activities and issued in foreign currency, secured apartment only. It is assumed that the order of recalculation will determine the Bank of Russia.

The project also includes a three-year reprieve on the removal at the expense of duty of premises bailiffs, if the borrower and his family it is the only habitable. Amendments should be made to the Federal law “On mortgage (pledge of real estate)”.

“This draft Federal law has been prepared to provide additional guarantees of the rights of citizens who are borrowers that have liabilities denominated in a foreign currency, on credit agreements secured by mortgages”, — stated in the explanatory Memorandum to the bill.

The speaker of the legislative Assembly of St. Petersburg Vyacheslav Makarov, said that this initiative “will help reduce the tension and ease the burden of the loan for debtors on foreign currency mortgages.

In March 2015 MPs St. Petersburg have proposed similar measures relating to the currency of the mortgage, in his address to Prime Minister Dmitry Medvedev.