Putin: banks virtually not lending to high-tech companies, others sources must be sought

MOSCOW. July 18 (Interfax) - The Russian financial system is not providing high-tech and rapidly developing companies with access to sources of financing, and additional solutions are needed in this area, Russian President Vladimir Putin said at a meeting of the Council for Strategic Development and National Projects.

"We have to admit that despite all our efforts, today the financial system is not providing access to sources of financing for high-tech and rapidly developing companies. They are not available today, and we cannot do without this. We need additional solutions here," Putin said.

"The tax incentive regime, we've got it, it is established and exists. The regime exists, but there is no money. The Central Bank chief confirmed that banks are reluctant to lend for such deals. Banks practically do not lend, to be frank, because the risks are too high," the president said.

Other sources need to be sought, Putin said, including, perhaps, the resources of pension funds. "But, as we well know, and as Elvira Sakhipzadovna [Nabiullina, the CBR head] also said, we need to ensure if not high returns (everywhere in the world pension funds do not count on high returns), we need to ensure the safety of these funds. And here we cannot do without the support of the state, we just need to think about this system," Putin said.

Work must be intensified on creating incentives for investing in high-tech companies, so that tools for their support really work. "The simplest thing, of course, is to attract some financial sources from those companies that have enough of these sources. They do not even know what to do with these funds. A good use of these funds and there is even no need to push them abroad, this money, there is no need to increase the volume of imports by any means, inventing all sorts of mechanisms and complex institutions, but it is necessary to interest them and show them what they could have in working with these fast-growing high-tech companies," the president said.

He asked when new mechanisms of support for high-tech companies could be introduced and what volume of resources they could receive.

Finance Minister Anton Siluanov replied that all legislative decisions should be taken in autumn. "As for legislative decisions, we have to prepare draft regulations over the summer and submit them to the parliament," the minister said.

"What is the amount [of funding for high-tech companies]? In terms of the budget, it is clear, but in terms of raising financing from the market, this should substantially exceed budget allocations, at least at the level of investment volumes, at least at the first stage, by businesses. Business should invest no less than the budget, and raising money from the market should probably be in volumes no less than those business invests in funding from the federal budget, that is, it should be a lot of money. Especially if we create incentives now," Siluanov said.

Central Bank of Russia (CBR) Governor Elvira Nabiullina said that the problem of financing high-tech companies now is not a lack of some tools, infrastructure solutions or incentives, but rather attracting potential investors. "We can still work with them on what prevents them from investing, we can adjust something for them to invest more actively, but it seems to me that the main thing is really to attract financial resources here, because almost all the tools and infrastructure are in working order. Something can be set adjusted there," she said.