MOSCOW - It is necessary to improve the mortgage lending system to ensure further social and economic development of the country, Viktor Khristenko, acting Prime Minister of Russia, said at a government meeting on Thursday.

He noted that mortgage lending was "seen as an important area in terms of the country's social and economic development". According to Mr. Khristenko, the government will consider bills aimed at improving the situation in the sphere of mortgage lending. The bills suggested lower lending costs, lower interest rates and lower risks for lenders, Khristenko stressed.

In particular, amendments to the Russian Civil Code to protect the rights of mortgage lenders will be discussed. According to the amendments, a borrower who does not pay off his mortgage, can be evicted.

The government will also discuss amendments aimed at reducing lending costs for borrowers. For example, mortgage contracts will not require certification by a notary public. The rights of family members - owners of mortgaged property will be verified. In addition, the process of registering such property with the state will be simplified. After the government approves these amendments, they will be submitted to the State Duma.

In March, the government will return to the issue of developing the mortgage lending system. Officials will discuss the concept of a bill on the participation of commercial banks on the market of mortgage loan securities. In 2004, the government will also prepare amendments regulating the issue and circulation of securities.