Russian Prime Minister V.V. Putin chaired a meeting of Vnesheconombank (VEB) Supervisory Board.
V.V. Putin’s Opening Address:
Good afternoon, Dear Colleagues,
We need to discuss a wide range of issues today. And one of them is Vnesheconombank’s participation in implementing the Government’s measures to cope with the crisis, including the Bank’s participation in the programs designed to support small and medium-sized business. Moreover, we’ll discuss VEB’s proposals for its participation in the construction of Olympic facilities.
I have already spoken today about additional measures for supporting the banking system at a meeting of the Government. It’s also a matter of providing additional funds to Vnesheconombank to enable it to expand the scope of its activity and fulfill its obligations and decisions.
In accordance with the Law and the Memorandum on Financial Policies, one of the Bank for Development’s top-priority objectives is to support small and medium-sized businesses and, above all, those operating in the real sector of the economy that introduce high technologies and create new jobs. Today, as we see it, it is the most topical task.
By now, the Bank has already extended credits worth 8.9 billion rubles and till the year-end is to finance projects for a total amount of at least 30 billion rubles. We must approve today all the documents required for implementing this program.
Another serious issue on the agenda deals with the preparations for the Sochi Olympics. VEB is tasked with becoming one of principal creditors of Olympic facilities construction. In the conditions of the world crisis, this step would make it possible for developers to raise long-term financial resources on acceptable terms and of course with due regard to reliable performance guarantees.
In this regard, I think it necessary to work out a financing scheme in such a way as to use VEB’s credit resources to pay for actually performed work, exercising, of course, permanent control over their real volumes and value.
VEB’s Management Board has developed basic approaches for the bank’s participation in financing Olympic facilities. We’ll also discuss them today.
Let’s proceed to discussing issues on our agenda.
Vnesheconombank’s Supervisory Board approved the introduction of changes to the Procedure for Implementing Measures by Vnesheconombank provided for by articles 1 and 2 of Federal Law N 173-FZ “On Additional Measures for Supporting the Financial System of the Russian Federation”.
The new revision of the Procedure has a number of changes concerning mandatory and additional requirements to the borrower (credit institution). In particular, obligations of only those Russian credit institutions are to be refinanced whose own funds amount to no less than 15 billion rubles and whose credit rating is not lower than the established level (B- under S&P rating scale) and against which the Bank of Russia imposed no sanctions as of the date of submitting an application for refinancing. Additional requirements to borrowers from among credit institutions are to submit aggregate data on their loan and guarantee portfolio for the year 2008 with regard to credits and guarantees extended to industries of the real sector of the Russian economy as well as Strategies for Lending the real Sector of the Economy and Population of the Russian Federation for a Period of 2009-2011.
Moreover, the Procedure now includes requirements to the terms of credit transactions provided that the borrower is a credit institution. They stipulate that the Bank shall receive a letter of recommendation from the Central Bank with a positive conclusion that the Bank can conduct a Credit Transaction and that the borrower shall guarantee that representatives of the Central Bank and/or authorized government bodies are incorporated into the borrower’s management bodies and that Russian owners’ share in the borrower’s capital is not lower than 50%+1 share during a credit transaction period and that the borrower shall provide acceptable security.
The Supervisory Board also approved Vnesheconombank’s participation in refinancing foreign debt obligations worth 1.5 billion US dollars of a company in the mining and smelting complex whose operation is of great socio-economic importance for the Russian Federation.
Origin: Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7 (499) 975-21134