Putin did not give hope to small business by reducing the cost of loans

Putin did not give hope to small business by reducing the cost of loans

Moscow. January 20. President Vladimir Putin called for a cautious attitude towards the question of optimization of rates under Bank credits for small and medium businesses, so as not to undermine the macroeconomic fundamentals underpinning the Russian economy.

“Regarding the difficulties in lending, lending rates. I am not going to go into details, pretend to be a famous economist or financier, but we many times discussed. The main challenges are clear: can not be low rates in the current markets, the economy, otherwise we just return the parties to getting the economy and agrees her with a stick so that it will not rise,” said Putin at a forum “Support of Russia” on Wednesday.

“We need to be very careful not to ruin the macroeconomic Foundation which is quite stable, despite all risks and difficulties, our economy,” the President added.

Putin also invited the Governor of the Bank of Russia Elvira Nabiullina to address the issue of increasing the banks ‘ lending to the real sector of the economy. “One of the tools (increasing lending), decrease the amount of redundancy. Indeed, resources are released, but it is important that these funds were actually channelled to the real economy, including small and medium businesses,” he said.

In addition, Putin agreed with the feasibility of introducing the averaged norm of the area of real estate for small and medium business, with which he pays no property tax. The head of “OPORA Russia” Alexander Kalinin at the forum appealed to the President with a request to cancel property tax on the cadastral value for very small offices, small businesses who previously did not pay. “We propose that such people had the opportunity of net of 500 square feet, where would this tax not paid”, – said Kalinin, noticing that this scheme is now operating at a similar tax for individuals.

He added that Moscow has followed this path, putting, however, this deduction in the amount of 300 square meters. “If you do not set some limit, then the regions will gradually begin to take a tax with very small offices,” he said. Putin agreed to the fact that some regions do not impose any special rules for small businesses.

In General, according to the President, Russian business, including small, persevered in difficult conditions, in which the country’s economy in recent times. Putin pointed to the exchange difference as on option now available to entrepreneurs. He also believes that the current economic environment should not become a serious obstacle for small businesses, in particular, the inflow into this sector of skilled professionals

Now the key rate of the CBR at 11% per annum. The Board of Directors of the Bank of Russia will hold the next meeting on monetary policy on 29 January 2016. In three previous meetings (in the middle of December, the end of October and the middle of September) rate remained unchanged.