The Russian government plans to appropriate up to 40 billion rubles to encourage mortgage credits and housing construction and the issue will be discussed on Friday.

Deputy Finance Minister Alexei Savatyugin will deliver the report and offer to appropriate up to 40 billion rubles to the Mortgage Crediting Agency to buy out mortgage deeds from banks and promote credits to developers and customers.

“The funds from the National Welfare Fund placed on VEB deposits will be provided to the Mortgage Crediting Agency as loans at 9.5 percent rate for a period of up to June 1, 2015,” a government source said.

“To balance credit terms and money flows on VEB mortgage deeds the lawbill proposes to extend the submission time to the Agency to June 1, 2020,” the source said.