Russia's Vnesheconombank (VEB) has started to select banks’ applications for participation in its programme of lending to small and medium-sized enterprises.
A total of 75 banks have submitted applications for participating in the programme, with the total amount of applications being R12.5bn (approximately US$396,000). This is according to a statement by minister of economic development, Elvira Nabiullina, at a meeting of the government commission on the development of small and medium-sized enterprises (SMEs).
Under this program VEB is to provide banks with financial resources at an interest rate of 10.5-10.7% per year, and banks in their turn are to extend credits to SMEs.
According to Nabiullina, using VEB’s financial resources, banks are to extend credits to small businesses at an interest rate of 13-14%. The minister believes that less expensive credits will be in high demand for SMEs.
“Banks will compete to reduce a final interest rate for small and medium-sized enterprises”, Nabiullina said.
VEB’s entire programme of lending to small and medium-sized enterprises is worth R40bn (approximately US$1.3mn).
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