Nearly 20% of Russian property developers are at risk of bankruptcy due to plunging sales driven by high mortgage interest rates, Deputy Prime Minister Marat Khusnullin said.
Khusnullin, who oversees housing and infrastructure in the government, warned that this figure could rise above 30% if financial conditions do not improve in the next six months.
“By my estimate, about 20% of developers face serious risks,” he told the Vedomosti business daily.
Although every fifth construction company has already delayed project completion by six months or more, he said, this is not a surefire sign that they will go bankrupt.
“But if the [Central Bank’s] high key rate continues, if money doesn’t flow into the sector, if citizens…