The Ministry for Regional Development said that as of February 1 it would stop paying mortgage subsidies for purchases of older flats. The reason is the fall of the average interest rate on the market for mortgages for individuals to below 5%. The state was paying 1% of the interest on the loans to people aged under 36. Under the current rules, the Ministry announces the new amount of its support once a year, on February 1. The policy change is slightly negative for banks, but should not have a major impact on the volume of mortgages contracted by banks. Strong competition in this market is keeping the rates at very low levels. We expect the mortgage market to continue to grow at double-digit rates.