Agency Delays Mortgage Bond Issue

The Federal Mortgage Lending Agency said last week that it would wait until state-run development institutions were able to invest in mortgage-backed securities before going ahead with a new 10 billion ruble ($408 million) issue.

"A number of government decisions are under way, including a decision to allow to invest insurance and state corporation funds into mortgage-backed securities," first deputy general director Pavel Voytov said.

The state institutions -- the Development Bank, Nanotechnology Corporation, Venture Fund and the housing reform fund -- have been created this year to help diversify the economy.

The institutions are slated to receive about $25 billion from the state budget this year, including oil and gas export revenues.

The Kremlin's economic aid Arkady Dvorkovich said the institutions should be allowed to invest part of these funds in mortgage securities.

A government ruling on investing state corporation funds is expected to be issued within a week or two.

In May, the agency, a state-owned company charged with the development of the home loan market, placed a debut issue of ruble mortgage-backed securities worth 3.3 billion rubles. The new issue is due to be registered by the financial markets regulator this week.

First deputy general director Sergei Barsukov said the agency was also planning to tap the corporate bond market this year with issues worth a combined 16 billion rubles. "Most likely, in the first 10 days of December. We are sure that the beginning of December will be the right time for the placement," he said.