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City news, 06.10.2003 18:20

German Banks Could Reduce Interest Rates for St. Petersburg Apartment Renovations

german bank In a healthy investment climate in Russia, interest rates on credits from German banks for the renovation of the city's so-called Krushchyovki apartments could fall to 5-8% per year in foreign currency, said Saint Petersburg Vice Governor Alexandr Vakhmistrov in a press conference on October 1. He said that today Germany is experiencing a slump in the construction market after the high growth rates after the country was united.

In this connection, the capacity of German construction, investment and banking companies is freed-up. They are looking for new markets, said Vakhmistrov. This is advantageous for Russia because it is now cheaper to borrow money in the West. 'If we can reduce the amount of bureaucracy as much as possible between Russian borrowers and Western creditors, and give Western companies government guarantees for risk, then we can expect low interest rates,' he said.

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