Putin demands reduction of interest rates on loans to enterprises

Russian President Vladimir Putin demanded a reduction of the interest rates on loans to enterprises, calling it a key factor of real sector development.

Russian President Vladimir Putin demanded a reduction of the interest rates on loans to enterprises, calling it a key factor of real sector development.

"Essentially, we are talking about the formation of such an economic policy, such a strategy in which all efforts of the federal and regional authorities should be oriented towards the development of the real sector," Putin said at the State Council meeting on Thursday.

"What steps I consider a priority: firstly, we should make loans accessible and create new competitive conditions for business financing," Putin said.

"We know very well that this issue is vital even without the sanctions. We have been speaking about it for a long time: interest rates on loans are often higher than the profitability of projects and make economic activities economically pointless," Putin said.

Putin said the Russian government had been "ordered that a reduction of interest rates on loans to industrial enterprises, including with the help of project financing projects, be considered."

"I know that this mechanism was developed and is being put in place by the Bank of Russia, and the ministries and the relevant agencies are also working on it. For this reason, I am asking Economic Development Minister Alexei Ulyukayev to report on the progress in this work and say on what conditions you intend to continue this work and what you suggest to improve work in this sector," Putin said.

"Our main purpose is to use one of our most important competitive advantages, our large internal market, to fill it with high-quality products manufactured by the real sector, naturally, while maintaining stability and balance inside the market and the economy in general, of course, in the interests of consumers," Putin said.

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