Subsidised mortgage lending programmes offered by developers at extraordinary low interest rates (as low as 0.01% p.a.) may involve risks for both borrowers and banks, and the financial system in general, according to the consultation paper prepared by the Bank of Russia.

Therefore, this may entail the application of additional measures to regulate such mortgage programmes.

On the face of it, the developer subsidised mortgages seem beneficial for citizens due to lower monthly payments. However, the price of purchased property turns out to be substantially exaggerated. When forced to sell an apartment (for example, in case of a loss of income or after relocation), individuals will be hardly able to do so without a loss, i.e. the amount of proceeds may not be enough to repay the loan. Moreover, it will be more expensive for a borrower to pre-repay this loan than a conventional mortgage. A number of banks, in turn, may underestimate interest and credit risks. Furthermore, artificially high prices may confuse the entire market.

The Bank of Russia intends to limit the spread of such lending schemes. Work is underway to introduce higher macroprudential buffers for these loans, and also to increase the rate of provisioning if the effective rate is below market levels.

The Bank of Russia welcomes comments and proposals to the report through 31 October 2022.

Preview photo: Fabio Balbi / Shuttersto

19

Emerson Schedules Fourth Quarter 2022 Earnings Release and Conference Call

ST. LOUIS (Oct. 12, 2022) - Emerson (NYSE: EMR) will report its fourth quarter and full year results prior to market open on Wednesday, Nov. 2, 2022. Emerson senior management will discuss the results during an investor conference call that same day, beginning at 9 a.m. Eastern Time, 8 a.m. Central Time.

All interested parties may listen to the live conference call and view presentation slides, which will be posted in advance of the call, by going to the Investors area of Emerson's website at www.Emerson.com/en-us/investors and completing a brief registration form. A replay of the conference call will be available for three months following the webcast at the same location on the Emerson website.

About Emerson

Emerson (NYSE: EMR), headquartered in St. Louis, Missouri (USA), is a global technology and software company providing innovative solutions for customers in industrial, commercial and residential markets. A leader in industrial automation, Emerson helps process, hybrid and discrete manufacturers optimize operations, protect personnel, reduce emissions and achieve their sustainability goals through its Automation Solutions and AspenTech businesses. Emerson's Commercial & Residential Solutions business helps ensure human comfort and health, protect food quality and safety, advance energy efficiency and create sustainable infrastructure. For more information, visit Emerson.com.

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