Medium businesses need changes in system of credit support - VEB chief
MOSCOW. June 26 (Interfax) - There is currently a gap in the support for medium enterprises provided by Russia's development bank, and this problem needs to be solved, Vnesheconombank (VEB) chairman Vladimir Dmitriev said in an article published in Kommersant on Tuesday.
The minimum amount of loans that VEB extends directly to end borrowers is currently 1 billion rubles, while the upper limit of loans to small and medium enterprises (SME) refinanced under the programs of VEB subsidiary SME Bank is 150 million rubles.
"As a result, the whole 'middle,' loans of 150 million to 1 billion rubles, is excluded by regulations from the field of our expertise and support, although there is a colossal shortage of loans in this range of amounts that is not covered by commercial banks," Dmitriev wrote.
He said there could be various ways to resolve this problem, including the recapitalization of SME Bank with government funds and the expansion of its role. "However, world experience has shown that a special mechanism is also needed - a special window - for support of rapidly growing medium enterprises," Dmitriev said.
Another possibility would be to create a specialized entity to support medium enterprises. VEB is currently holding substantive negotiations with Germany's KfW to form a fund that would meet the financing needs of medium business, Dmitriev said.
