Not so long ago Prime Minister Vladimir Putin made the heads of leading banks a promise that they would not go on leave: "Until you bring the total credit portfolio to half a billion roubles, don't even think about a holiday." The bankers seem to be anxious to go to the seaside. The head of VTB, Andrei Kostin, rushed to Sochi yesterday to personally report to the Prime Minister on his progress. After hearing the report, Mr Putin told him to take a rest - for a week.
The CEO of VTB, Andrei Kostin, was there to report how vigorously his subordinates were working to fulfill the Prime Minister's instructions.
"What are the results for the past months?" Mr Putin asked.
"At the end of July we committed ourselves to increase the credit portfolio of leading Russian banks. The Government set an objective for VTB to increase its credit portfolio by 100 billion roubles in the third quarter, the banker replied breathlessly. In July, just within one month, it increased 6.4%, or 84 billion roubles. We fulfilled 84% of the quarterly assignment. We won't have the same rate in August, but on the whole I think we will have fulfilled and over-fulfilled the plan in the first ten days of September. When the Prime Minister asked about toxic assets (the assets VTB inherited from insolvent borrowers) it turned out that the bank could be quite good at retailing.
"One of the bad assets we received was the building of the Children's World Department Store at Lubyanka, our most popular store in the last 50 years," Mr Kostin said. "We are starting to finance it and in 2012 it will be a modern shopping mall for both children and adults and what's more, the prices will be affordable. It will not be a shopping centre for the elite. It will sell quality goods at low prices. We are sure we will have investors before it opens. What we currently record as losses in our accounting reports may start turning a profit soon."
The Prime Minister saw fit to reward this practical approach and asked the banker: "So, you are ready to go on leave, the process is well underway?"
"With your permission, just a week. I don't think I can afford a longer leave," Mr Kostin said modestly.
Anastasia Savinykh