Loans for agriculture down 20%-25% - Medvedev
MOSCOW. May 16 (Interfax) - The volume of loans allocated to the agriculture industry in the first five months of the year has considerably dropped compared to 2011, said Russian Prime Minister Dmitry Medvedev.
"We have credit resource allocation figures. The overall allocation in the past several months as of May 10 is around 20%-25% less than last year," Medvedev said at meeting on spring sowing.
The loans for agriculture situation has "become somewhat more complex," he said.
"The weighted average interest rate on loans allocated for seasonal fieldwork went up two percent in the first quarter of this year to an average of 12%. This is not very good of course," the prime minister said, asking for factors affecting the situation to be identified.
Acting first deputy prime minister Viktor Zubkov said lagging behind the rate of last year's financing is not a danger because 2011 was a good year and agriculture producers obtained high revenue. In addition, 25.1 million tonnes of grain has already been exported. Gross production grew 24% last year and some agriculture producers are not taking loans but managing with their own funds.
The volume of loans for agriculture announced by Rosselkhozbank and Sberbank of 60 billion to 69 billion rubles will be provided, Zubkov said.
Medvedev replied that Rosselkhozbank is lagging behind in financing by 30%. "I can allow that agriculture producers have their own funds, but banks need to pay attention to that," he said. There were no chief representatives from these banks at the meeting, he noted. Zubkov said they were away on business trips. "Let them return from their business trips and deal with agriculture," Medvedev said. Zubkov said he would bring them to the next meeting.