Russian official wants Sberbank, VTB 24 to boost loans to small cos

KRASNOGORSK, Moscow Region, Apr 5 (PRIME) -- Russian banks Sberbank and VTB 24 should enhance lending to small- and medium-sized businesses, First Deputy Prime Minister Igor Shuvalov told reporters Tuesday.

The Russian Small and Medium Business Corporation and the central bank are implementing a program to support small businesses that have projects in the key economic sectors. The corporation gives loans at a 10–11% interest rate to small and medium companies and the central bank refinances the loans at 6.5%.

Under this program, the loans will be provided by Russia’s largest banks, including Sberbank, VTB Bank, Gazprombank, Otkritie Financial Corporation, VTB 24, Russian Agricultural Bank, Alfa-Bank, the Bank of Moscow, Promsvyazbank, Rosbank, Raiffeisenbank, and Russian National Commercial Bank (RNCB) operating in Crimea.

“It is necessary to distribute segments. Sberbank and VTB 24 should take upon them a certain segment, they are not so far much involved in support of small and medium businesses,” Shuvalov said.

Shuvalov also expects that lower inflation in the next two years will reduce interest rates on loans to small and medium businesses.

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