Good afternoon, Esteemed Colleagues!
Today we are holding our regular meeting of Vnesheconombank’s Supervisory Board. We are to discuss a wide range of issues relating to providing further support for the Russian financial system.
I’d like to remind you that last week we discussed at length the situation both in the banks themselves and the measures to increase lending to the real economy. A number of important decisions were made on improving the mechanism for extending state guarantees and on additional capitalization of banks.
I’d like to stress that the main goal of our efforts remains the same — it is to create the most favorable conditions for businessmen’s access to state funds and to make lending interest rates more acceptable for borrowers.
A key role in these efforts is delegated to Vnesheconombank. It should carry on performing its functions as a bank for development.
By the end of 2009, the amount of development credits extended by Vnesheconombank to the domestic economy will be in excess of 300 billion rubles.
High priority should be given to financing projects of national significance aimed at removing infrastructure restrictions and creating new jobs.
I’d like to ask you to focus on providing support for small and
It’s very important to ensure that committed resources reach the real economy in full and are used extensively to support troubled enterprises. I hope that the Bank will speed up its efforts to this end.
Under the difficult financial conditions we need to set stricter terms of extending credits. Up until now, Vnesheconombank has already extended credits to six commercial banks for a total amount of 257 billion rubles.
Today, Vnesheconombank’s Supervisory Board has considered 12 more applications worth more than 19 billion rubles. In this respect I would like to say that these funds will be made available under the new rules. This means that credits are to be extended for a period of no less than one year at the Central Bank’s interest refinancing rate plus three percentage points. So, it’s necessary to hold additional negotiations with banks and agree to operate on these terms.
Vnesheconombank would also continue to participate in implementing measures for the financial restructuring of
Vnesheconombank’s issuance of
In the course of our meeting we are supposed to make a decision on issuing foreign currency denominated bonds for a total amount of 5 billion US dollars.
Today we’ll also analyze the Bank’s work on providing financing for Olympic facilities subject to decisions on providing these financial resources made earlier at the previous meeting of Vnesheconombank’s Supervisory Board.
In total, VEB has already provided financing for eight projects for the total amount of 63 billion rubles. These projects are the Sochi thermal power station, the Sochi Airport, the Port of Sochi Immertinsky, the main Olympic village, the Sochi Sea Port, the rubbish recycling complex in the city of Sochi.
Financing worth 1.8 billion rubles was already opened last week.
Let’s get down to work.
Origin: Internet Portal of the Government of the Russian Federation
All-Russian Forum on Small and Medium-Sized Enterprises Organized by the Russian Economic Development Ministry, Vnesheconombank and the All-Russian Nongovernmental Organization OPORA RUSSIA Held in Moscow
An All-Russian Forum on Small and Medium-Sized Enterprises organized by the Russian Economic Development Ministry, State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and the All-Russian Nongovernmental Organization OPORA RUSSIA was held in Moscow at the International Centre for Commerce on April 22.
In attendance of the Forum were Russian Prime Minister Vladimir Putin, First Deputy Prime Minister Igor Shuvalov, Russian Economic Development Minister Elvira Nabiullina, Presidential Aide Arkady Dvorkovich, Federal Antimonopoly Service Head Igor Artemiev, Moscow Mayor Yuri Luzhkov, President of the Russian Chamber of Commerce and Industry Evgeny Primakov, OPORA RUSSIA President Sergei Borisov, executives from Sberbank, VTB, the Russian Development Bank, Rossselkhozbank as well as representatives of small and medium-sized enterprises from Russia’s regions.
The Forum’s main themes were the state’s support for small and medium-sized enterprises under the conditions of the crisis, financing of small and medium-sized enterprises under the conditions of the credit crunch, reducing administrative barriers to the development of small and medium-sized enterprises.
Vnesheconombank Chairman Vladimir Dmitriev’s address at the forum on small and medium-sized enterprises
Good afternoon esteemed colleagues, friends and partners!
I would also like to give my best wishes to Sergei Renatovich because he is not only the Head of OPORA RUSSIA but also a solid and reliable partner of Vnesheconombank in achieving an ambitious goal of providing financial support through Vnesheconombank’s system for small and medium-sized enterprises in our country. We are witnessing OPORA’s support and professionalism. And in fact, he and his colleagues are taking great pains to achieve this very difficult but crucially important for our country goal of supporting and boosting small and medium-sized enterprises.
For at least five years, Vnesheconombank has been implementing this program of supporting small and medium-sized enterprises. We’ve done quite a lot for this period. We established business relations with regional banks and put in place a system of lending small and medium-sized enterprises through regional banks. In our opinion, we managed to overcome the one-sidedness in lending small and medium-sized enterprises through the system of state-run banks. For example, five years ago, the bulk of loan portfolio, about 60 plus percent, of regional banks that obtained credits through the Russian Development Bank accounted for trade but now more than 60 percent of loan portfolio of regional banks cooperating with the Russian Development Bank accounts for the industrial sector, transport, telecommunications and only 18-20 percent accounts for trade. We believe that this sector is very important for supporting small and medium-sized enterprises and we think that our objective is to exclusively support innovation activities of small and medium-sized enterprises.
But saying that we have already done a lot, I’d like to stress that there is still much to be done. And in fact, the state’ role in supporting small and medium-sized enterprises became increasingly pronounced after the state started to help small and medium-sized enterprises using budgetary sources having engaged development institutions. Last year, 9 billion rubles were used to support small and medium-sized enterprises through regional banks. It is safe to say now that the system itself is being updated and reset and the amount of funds to be committed to small and medium-sized enterprises has significantly increased to 30 billion rubles. But at the same time I would like to say that those 9 billion rubles were not the only funds committed to support small and medium-sized enterprises through the system of state-run banks and the ones related to them. According to our estimates the amount of funds committed to small and medium-sized enterprises through Vnesheconombank’s subsidiary banks was about 30 billion rubles. 9 billion rubles were committed to create new jobs and build new production facilities, the companies’ turnover increased by 40 percent and the number of those employed grew by 35 percent, so it is safe to say that the system of providing state support for small and medium-sized enterprises through lending regional banks was set in motion. This year we are not going to limit ourselves to 30 billion rubles because we believe that our subsidiary banks would be active in providing financial aid to small and medium-sized enterprises. Moreover, the system agreed upon with the Economic Development Ministry, the new system of supporting small and medium-sized enterprises makes it possible to produce multiplier effect in terms of increased amount of financing small and medium-sized enterprises.
It is also important to stress that our program backed and initiated by the state generated keen interest among our foreign partners. As a result, not long ago we entered into an agreement worth 200 million euros with our partner bank, one of the oldest German banks, KFW. The bank intends to use these funds for lending regional banks against Vnesheconombank’s guarantee to support innovation activities of small and medium-sized enterprises in such sectors as energy saving , environment protection and others. And yesterday, Interfax reported that the first credit to be extended by KFW to a Russian bank was worth, to my mind, 30 million US dollars. The funds are to be committed to Promsvyzbank against Vnesheconombank’s guarantee to support specific programs aimed at developing small and medium-sized enterprises. Against this background the figures we are negotiating with the European Bank for Reconstruction and Development and Deutsche Bank look a lot more impressive. The amount of credit resources these banks are ready to extend against Vnesheconombank’s guarantee to support small and medium-sized enterprises through regional banks is about 1 billion euros.
So, it is safe to say that this year small and medium-sized enterprises would receive about 100 billion rubles through the system of state banks. And we believe that this amount could be increased. We can see that small business is greatly interested in the program implemented through Vnesheconombank and the system of its subsidiary banks. At the same time our Bank improves the quality and increases the amount of resources made available. We are quite aware that there is still much work to be done in this respect and that is why we regard this conference organized by our Bank, the Russian Economic Development Ministry and OPORA RUSSIA as an event that would serve as a basis for summing up results, synchronizing our actions, identifying problems and most importantly, exploring new opportunities in our joint efforts to support small and medium-sized enterprises.
Origin: Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975—21-34