Donetsk, Jun 6 — DAN. Russia’s Promsvyazbank (PSB) has provided the first mortgage loan to a Donetsk People’s Republic family which is buying an apartment in the town of Shakhtyorsk, the PSB press service told the Donetsk News Agency on Tuesday.

“The Bank has granted the first mortgage loan in the new Russian regions. A DPR family will purchase an apartment in the Shakhtyovsk town located not far from Donetsk, in the secondary housing market, ” the press service said. “The mortgage loan amount is 850,000 rubles with a payback period of 20 years. Insurance coverage of the mortgage agreement has been provided by the PSB Strakhovaniye company.

PSB has developed the necessary infrastructure for mortgage banking in the new regions. The Russian Construction Ministry is drawing a housing program, a crucial element for developing the mortgage loan market. After the launching of the program, residents will be able to take out preferential mortgages at a rate not exceeding 2 percent.

PSB earlier offered the opportunity to residents of the Donetsk and Lugansk People’s Republics to apply for a PSB bank card with a 101-day grace period. The minimum card limit is 10,000 rubles. Card issue and servicing are free of charge.  PSB also launched a program enabling card users to withdraw cash at petrol stations in the DPR.*jk