VTB has reduced interest rates on loans for small businesses

VTB Bank Tuesday cut interest rates for individual entrepreneurs and small businesses on average by 1%. depending on term and credit limit, reports TASS with reference to press release of the credit organization.

Reduced interest rates apply to all new loan applications, as well as on current applications, a decision on the issuance of credit which is now not accepted. In the category of small business of VTB considers legal entities and individual entrepreneurs with annual sales revenues up to RUB 300 million.

Like a week ago I wrote , by the middle of April 30 commercial banks received 824 billion from a trillion promised by the authorities. The funds are given to credit institutions under the obligation every month for three years to increase by 1% of total lending in areas that the government considers a priority — mortgage lending and lending to selected sectors of the economy, small and medium businesses and Russian regions.

Then it was noted that to lend to small and medium business banks do not want even at the expense of budgetary funds. This is the only high-priority areas of the economy where the government capitalized the banks showed zero growth of lending. The Central Bank in its report explained that the reason — high risk.

In October 2015, Andrey Kostin, head of VTB Bank (he became the recipient of budgetary funds on the channel DIA), said about the absurdity of crediting of small and medium enterprises in the current environment. “If today’s small and medium business is not in demand in the country, there is no field of activity for them, then what is their credit? Will be bad debts. There is consumption, there is a demand, there will be money, no demand — why cheap money

Interviewed representatives of relevant business associations reacted to the speech Kostina, saying that the head of the second largest state Bank is wrong.