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Moscow, August 6, 2007 —
President Vladimir Putin of Russia has signed into law amendments to the country’s tax code, based on recommendations from IFC, a member of the World Bank Group. These changes are critical to developing the local mortgage market and reducing tax risks related to securitization and corporate loans.
The amendments were developed in response to a request by Russian mortgage lenders to help mitigate adverse consequences from their loan transactions. They were drafted by an IFC working group, which includes key stakeholders in the Russian mortgage industry. The group’s tax and accounting committee has been working to unify industry stakeholders since 2006.
The amendments to the Russian tax code will help stabilize taxes on mortgage notes circulating in the secondary market. This will speed up development of the country’s mortgage-backed securities market, making it more attractive for investors,” said Tomasz Telma, IFC head of business development on financial markets in Central and Eastern Europe.
The initiative is led by the IFC Russia Primary Mortgage Market Development Project, which is also supported by the governments of the Netherlands and Switzerland.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing capital in the international financial markets, and providing advisory services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY06, IFC committed $8.3 billion, including syndications, to 284 investments in 66 developing countries. For more information, please visit
www.ifc.org
.
IFC in Russia
Russia became a member and a shareholder of IFC in 1993. Since then IFC has invested $3.4 billion in the country, including $527 million in syndicated loans, in over 130 projects across a variety of sectors. In FY06, IFC’s investments reached $519 million. IFC’s investment portfolio in Russia currently stands at $2 billion, making it the largest country exposure for IFC globally. IFC has invested in key sectors including agribusiness, banking, construction materials, health care, housing finance, information technologies, infrastructure, leasing, mining, oil and gas, pulp and paper, retail, and telecommunications. For more information, visit
www.ifc.org/europe
.
About SECO
The State Secretariat for Economic Affairs is the Swiss Confederation's competence center for all the core issues related to economic policy. Its aim is to create basic regulatory and economic policy conditions to enable business to flourish and benefit all. SECO also represents Switzerland in the large multilateral trade organizations and international negotiations, and is involved in efforts to reduce poverty and help developing countries with transition economies build sustainable democratic societies and viable market economies. Each year, Switzerland spends about 1.9 billion francs on development cooperation and transition assistance to countries.
About the Agency for International Business and Cooperation
The Agency for International Business and Cooperation is part of the Dutch Ministry of Economic Affairs. Its mission is to promote and encourage international business and international cooperation. As a government agency and a partner to private and public sector organizations, it aims to help them achieve success in their international operations. For more information, please visit
www.evd.nl
.
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