Putin says economic situation requires new adequate measures

MOSCOW, Apr 14 (PRIME) – Russia’s economic situation requires new additional steps adequate to the challenges, President Vladimir Putin said on Tuesday.

"A wide range of decisions to support the economy, business, small and medium-sized entrepreneurship, has been declared and is being carried out. But the situation requires new, additional steps adequate to the level of new challenges," Putin said, adding that Russia has enough resources for a proactive anti-crisis policy.

The decline of demand, with retail sales falling by more than 35% in April, is the most sensitive issue for the companies, Putin said.

"The situation for small and medium-sized business, for the servicing organizations, is particularly difficult. The decline of demand – both our and other countries – is the most sensitive issue for the companies. The retail trade amount, retail sales fell by more than 35% in April," he said.

"We see real stagnation of lending to the producing sector of the economy. This means that many companies’ investment plans, development and upgrade programs were put on ice," Putin said.

He added that the number of mortgages in the banks of systemic importance plummets which will hurt the construction industry.

Electric power consumption, one of the economic indicators, declined by 5% on the year in the first 12 days of April, Putin said.

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