28 Dec 2010 15:43

Lending rates must not hold economy back - Putin

MOSCOW. Dec 28 (Interfax) - Bank lending rates must be lowered further, Russian Prime Minister Vladimir Putin said during a visit to the VTB bank's new office.

"You and I know and understand what is happening in western economies, in the United States and in Europe - it is clear that we cannot be oriented towards rates like that due to the nature of the Russian economy, and it would be no use anyway. But lending rates, especially for the real sector, must not be a constraining factor for development," Putin said.

"Wee understand this and we hope that together with the Central Bank we will lower rates consistently," he said.