MOSCOW. April 21 (Interfax-AVN) - Establishment of the housing mortgage system for Russian servicemen has entered the final stage.
"Establishment of the servicemen housing mortgage system entered the final stage when the Russian president signed a corresponding decree," Major General Alexander Rylsky, head of the Defense Ministry workgroup on housing mortgage system legislation, told Interfax-Military News Agency on Thursday.
He noted that the Defense Ministry had been vested with the authority of a federal executive body, enforcing the housing mortgage system. "The government is soon expected to establish a federal legal entity, controlled by the Defense Ministry and tasked with acting as the housing mortgage system executive body," Rylsky said.
According to him, the institution will collect accumulation fees, transferred to personal accounts of servicemen, as well as transfer assets to management companies, tasked with preserving and augmenting such assets.
Rylsky emphasized that management companies would be selected on a competitive basis.
"It is worth mentioning that assets, transferred to management companies will be protected against devaluation and investment in risky ventures," he said.
Rylsky also noted that servicemen, participating in the housing mortgage system, would receive 37,000 Russian rubles ($1,300) each on their accounts in 2005. "Later on the sum will be revised on an annual basis, taking into account the rate of inflation," he said.