26 january 2009

First Deputy Prime Minister Viktor Zubkov chaired a meeting on sustained development of the farming sector, the fishing and timber industries

Participants:
“The Government is constantly monitoring efforts to provide affordable financing to farming, fishing and logging,” Mr Zubkov said at a meeting at the Government House.

"The Government is constantly monitoring efforts to provide affordable financing to farming, fishing and logging," Mr Zubkov said at a meeting at the Government House.

He expressed general satisfaction with the level of financing provided to agribusinesses, fisheries and timber companies. In January, banks issued a 9.2 billion rouble worth of loans, including 6 billion for current spending, and 3.2 billion for investment projects.

Mr Zubkov pointed out the need to support a rational balance of operational and investment resources for the spring sowing season.

"We must ensure the provision of sufficient resources. This is curial. We'll consider this issue at a March Government meeting attended by bank leaders," he said.

Mr Zubkov issued instructions to analyse once again the financial requirements of branch priority investment projects. Their number currently exceeds 800, and the total need for resources is estimated at over 260 billion roubles.

He said it also had to be specified "what facilities the country would have as a result of those projects and when."

The participants in the meeting considered the needs of the agribusinesses, fisheries and timber companies included in the strategic list. While lending to this companies, Mr Zubkov said, banks need to consider what other kinds of government support they are getting, such as restructuring of overdue taxes, customs tariff privileges, Government acquiring a stakes in their capital and state guarantees.