12 Apr 2010 19:08

Lowering rates on subordinated loans to 4.75% is too optimistic- Savatyugin

MOSCOW. April 12 (Interfax) - Russia's Finance Ministry holds the position that lowering rates for subordinated loans to banks to 4.75%, as proposed in a draft law developed by State Duma Deputy Vladislav Reznik, is too optimistic, Deputy Finance Minister Alexei Savatyugin said during Russian Business Week organized by the Russian Union of Industrialists and Entrepreneurs (RUIE).

"Concerning rates, I think that we will reach a mutual understanding in the near future. Vladislav Matusovich's (Reznik) 4.75% is too optimistic a proposal. If there is a decrease it not be so low, of course," he said.

He added that an option for preterm payment on subordinated loans has been under discussion. "In any case the possibility of preterm return on a loan will be proposed. We have so far agreed that the approval of the second party [Vnesheconombank or the Central Bank of Russia] will be received if anyone wants to return on a loan or a portion of a loan," Savatyugin stressed.

Savatyugin said that the same terms will be given to banks for lowering rates and pre-term payment of subordinated loans (irregardless of the property form).