VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
“If we subsidize two-thirds of the Central Bank's refinancing rate (we have agreed to do so, which is why we must do this) for citizens who take out car loans in 2009, the state will have to pay 8% of the rate they pay to commercial banks for them. It is necessary to allocate funds in the budget for this purpose - about two billion roubles.”
“The capital of state-owned banks will also be increased. Needless to say, here the state can take part in first level capital, that is, increase its presence in these banks. We are planning to invest 200 billion roubles in the VTB and 100 billion roubles in Vneshekonombank, plus, possibly, a 100 billion subordinated loan. Sberbank will not be neglected, either, if it needs more money. This task will be carried out by the Central Bank”
"Under the law and memo on fiscal policy, one of the priority tasks of the Bank of Development is to support small and medium-size business. This primarily applies to companies that are operating in production, introducing new technologies, and creating jobs. As we understand, this is particularly urgent today."
“In the next few months, the state will considerably increase the share of its participation in the banking capital of the second level. This primarily applies to private commercial banks. I'd like to stress once again that I'm talking about the second level, that is, so-called subordinated loans. They are given for a long term and cannot be recalled ahead of time. For this reason, banks register them as their capital. However, creditors do not have the right to take part in administering banks; the ownership of banks does not change, either.”
“We consider it inexpedient for the state to invest directly into private banks of the first level. In other words, we do not want to buy shares of private banks. First, responsibility for these banks should rest with their current owners; they should not seek shelter behind the state. This is not the case. Second, the state's participation in banks' capital of first level may violate the rights of minority shareholders, which is also inadmissible”.
“We will use the following mechanism for granting subordinated loans. An additional 100 billion roubles will be earmarked, apart from the already allotted 225 billion roubles, for this purpose. To receive subordinated loans, the shareholders of commercial banks should increase their capital themselves. For each rouble of additional capitalisation, commercial banks will receive one rouble of a subordinated loan.”
“True, the state has increased its stake in energy giant Gazprom, a strategic company, from 38% to 51%, which makes it a controlling stake. What's so surprising and unusual about this, compared to the European energy sector? How many years did it take France to denationalise its power-generating industry? We are now witnessing relations between major European companies, with the state directly participating in such disputes.”
“We have reduced the tax burden on the energy industry and will make further cuts. We have reduced the profit tax rate from 24% to 20%, which mainly concerns champions. We will help them if need be. We are helping them even now with loan refinancing, which mainly concerns foreign loans. We have earmarked $50 billion for this purpose and established a special agency to assist such companies.”
“True, we are increasing import duties of certain ready-made equipment to promote Russian manufacturers-but I don't think we are extremists in this respect. We are also reducing and even abolishing import duties for technical equipment, especially of the kind Russia is not manufacturing, thus promoting Russian industrial advancement. This support concerns not only the big businesses you call "champions", but also small and medium-sized businesses. We have raised bonus depreciation by 10-30%, which also concerns the entire national economy.”
“Rosagroleasing capital is also increasing by 25 billion roubles, as agreed before. A greater part of the sum will go towards purchasing farm machines and vehicles, as we have intended, thus increasing sales of Russian-manufactured machinery. The money will also go towards purchasing pedigree stock and industrial equipment.”
“An additional 83 billion roubles have been allocated for the purchase of 40,000 standard flats. They will be used to resolve the housing problems of army servicemen, as well as citizens living in dilapidated buildings. We will purchase the housing at its real price.”
“Starting this year, the tax break for citizens that are purchasing or building housing has been doubled to reach two million roubles. In other words, they will be able to save on the income tax up to 260,000 roubles, compared with 130,000 roubles, as was the case in the past. This norm will be retroactive and will apply to the families that bought housing last year. It has also become possible to use maternity capital for mortgage payments after the birth of the second child. We remember lengthy debates on whether this money will be paid to citizens at all. This year, people should start receiving this money, and not waiting until a child is three years old, but from the birth of the second child.”
“The borrowers that have become temporarily unable to pay mortgage interest rates due to the loss of a job or cuts in incomes will be offered special refinancing programmes, and a chance to pay in installments. The federal mortgage agency will also provide funds for this purpose.”
“In the building industry, the common logic of anti-crisis measures is to support the demand for housing and prevent the curtailment of construction projects. The majority of the adopted measures are oriented to directly help citizens and sustain the demand.”
“The charter capital of the Russian mortgage agency (AIZhK) was increased by 60 billion roubles, which has allowed the banks to continue implementing mortgage programmes.”
“The Finance Ministry and other colleagues have also backed the decision on the payment of dividends. They should be primarily channelled into investment.”
“As you know, in the last few months commercial banks have received substantial additional funds from the National Prosperity Fund and from the Central Bank. It is important to analyse whether this liquidity reaches companies, and whether the military-industrial complex is content with the terms of loans offered by banks.”
“Despite all the existing problems, it is essential that we continue implementing the programme for the technical re-equipment of defence companies and for the production of modern military hardware. We understand that under the circumstances, defence companies find it hard to allocate funds for development purposes, at least, on the scale that was planned before. Therefore, it is necessary to streamline federal defence-oriented programmes, and use the funds thus saved for the completion of the projects which are critical for improving the technological level of the national military-industrial complex.”
“These measures subsidise interest rates. Allow me to recall what we have agreed on. The companies in the military-industrial complex involved in carrying out state defence orders will receive subsidies from the federal budget to make up for part of the expenses on interest rates on loans received in Russian lending organisations. Second, they will get subsidies to compensate for the part of their expenses on profile industrial activities, which would prevent their economic collapse and bankruptcy. In 2009, the companies involved in fulfilling state defence orders will receive state guarantees on loans.”
“When we develop measures to support the military-industrial complex, we proceed from its special significance for Russian security and for the technological development of our economy and industry. In the last few years we have seen a marked increase in the supply of our armed forces with new weapons, special military equipment, spare parts and other essential hardware. We have far-reaching plans for re-equipping the army for the future. More than one trillion roubles have been allocated for this purpose just for 2009. The overall expenses for this purpose will total about four trillion roubles by 2011.”
