Putin instructed to take measures to reduce the risks of bankruptcy of developers

Russian President Vladimir Putin has instructed to take measures to reduce the risks of bankruptcy of developers, the Kremlin's press service reported on May 23.

The list of instructions of the head of state is published on the website of the President of the Russian Federation following the meeting of the Presidium of the State Council on May 15 "On the development of infrastructure for life."

"Take measures to reduce the risks of bankruptcy of organizations engaged in housing construction; eliminate the possibility of credit institutions charging additional fees when providing citizens with mortgage housing loans (loans) under preferential mortgage programs with state participation," the document says.

In addition, Putin instructed the Cabinet of Ministers and the prosecutor's office to exempt developers from restrictions not established at the federal level. It was also instructed to exempt from value added tax (VAT) services for communal repairs in apartment buildings.

"The Government of the Russian Federation, together with the Prosecutor General's Office of the Russian Federation and the executive bodies of the constituent entities of the Russian Federation, should take additional measures to prevent the establishment by regulatory legal acts of the constituent entities of the Russian Federation and municipal legal acts of requirements for developers that are not established by federal law, the register of documents, information, materials, and approvals provided for by the legislation of the Russian Federation on urban development," the text says.

What it costs them: bankruptcies of real estate developers have begun in Russia's regions

In which subjects developers faced financial difficulties

On February 17, Viktor Panchenko, head of the restructuring practice at YUR-PROJECT, spoke about ways to protect the rights of equity holders in the event of a developer's bankruptcy. According to him, escrow accounts are the main such mechanism. The apartment must be purchased under an equity participation agreement after July 1, 2019.

In April, in the data of Fedresurs, which was made available to Izvestia, it was noted that in January –March, the courts declared 120.99 thousand people bankrupt. It was clarified that the number of bankruptcies in the framework of the judicial procedure increased by 34.8% compared to the first quarter of last year.