NOT QUITE WITH THE PROGRAM:
NOT QUITE WITH THE PROGRAM:
Yuri Luzhkov, the mayor of Moscow, knows a quick ruble when he sees one, and he saw one when new legislation establishing mortgage-based credit took effect last week. Luzhkov immediately created a city-government fund to lend twenty- and thirty-year money to homeowners at rates below those offered by commercial banks. Other regional governments are likely to follow Moscow’s lead. This could be a good deal for borrowers — some predict a housing and construction boom will lead the country out of recession — but it surely won’t help the private financial sector.
