Putin pledges to talk with banks about lowering credit rates
MOSCOW. April 25 (Interfax) - The matter of lowering credit rates will be additionally worked on with Russian banks, Russian President Vladimir Putin said.
"I've already said that I think that commercial banks in Russia are too enamored of their own profits and margin and over-exaggerate the risks to the Russian Federation's economy. On that count, in an absolutely market regime without any administrative pressure will we talk and analyze the situation," the president said during a live Q&A session with Russian citizens when asked about high bank rates on credits for private individuals.
Asked why a credit for Cyprus is provided at a lower interest rate than are credits to Russian citizens, Putin said that the cost of credits to citizens should not be compared with the cost to states, particularly Cyprus.
"Within the country credits are issued by commercial financial organizations to private individuals in this case, and on an intergovernmental basis credits are issued not to private individuals, but to states under government guarantees. Accordingly, rates there are completely different. It can even be assumed that this is the diversification of our reserves to a known degree. But, of course, the example of Cyprus says that these are not always reliable investments. That is first, but second there is yet another consideration, when we ourselves place, we place them at 1.5%-2% but give credits at 4%. And that is beneficial," the president said.
