Prime Minister Vladimir Putin held a meeting on the concept of Russia's long-term social and economic development until 2020 and main directions of the government's work until 2012.

Vladimir Putin's opening address:

Good afternoon, colleagues.

Our meeting today is going to be devoted to the concept of Russia's long-term social and economic development until 2020. We will also review the main draft directions of the Government's work until 2012, that is, for the next four years. These documents have been broadly debated by the federal authorities, in the regions, and by the expert community. Now we have reached the homestretch.

I would like to remind you that in July 2006, the State Council instructed (the Government) to draft a programme which would determine the prospects and priorities of national development for the next decade.

The Government meeting on Wednesday, October 1, is going to discuss the concept and the main directions. Today, we should dovetail the last details of these documents. I would like you to pay special attention to the following important points.

First, we should guarantee favourable macro-economic conditions for the implementation of our plans, and consolidate the credit and financial system.

Second, we should map out scenarios for further development of the pension system.

Third, we should carry out our plans to improve the infrastructure and form new growth points in the regions.

I have mentioned the need to strengthen the credit and financial system. In the meantime, we know well that the world economic and financial system is going through serious upheavals. They originated in the United States, and for the time being, the U.S. authorities are unable to cope with the economic problems and the obvious domestic financial crisis. We can state, also with regret, that now this "virus" has infected the European financial system.

Under the circumstances, the Russian banks and companies which have been borrowing money in the West will find it very difficult to extend old credits and get new ones in the Western financial institutions. Therefore, the Russian Government and the Central Bank have offered a number of additional measures to support the Russian financial system, to continue the projects launched earlier, to restrict the negative impact of the world financial crisis on the domestic economy, and to protect the assets of Russian companies abroad.

First, any Russian bank or company will be able to ask Vnesheconombank (VEB) for a loan in order to pay off its debts to foreign creditors on the borrowings taken before September 25 of this year. These loans should be given on market terms. With this aim in view, the Central Bank will place deposits into the VEB to cover the issued credits. This sum will not surpass $50 billion, at least for the time being.

Second. There is a proposal to allow the Central Bank to give unsecured loans to businesses. This will make it possible to support the banking market with adequate liquidity in a short span of time. The Russian Finance Ministry is already doing this for 28 banks. If the proposed plan is carried out, the number of banks using this service will increase substantially.

Needless to say, credit risks should be minimised, and the Central Bank will continue to strictly monitor the economic situation of those financial organisations that will receive such credits.

Third, to support the market of inter-bank credits, the Central Bank will be granted the right to sign agreements with certain banks on reimbursing part of their losses from crediting other national financial institutions, if such losses occur.

Fourth, as we agreed earlier, 250 billion roubles will be earmarked in this and next years' budgets to support the stock market. The first 75 billion roubles will be allocated in this year's budget to increase the VEB's capital. It has already started insuring the actions taken by the leading banks to support the operation of the exchange. The VEB Monitoring Council made this decision on September 18, and I signed it as its chairman.

Now we should back the VEB to consolidate this progress. All these measures require changes in the legislation. I would like to ask the Finance Ministry to discuss all these questions with the State Duma deputies, and to submit the necessary documents to parliament.

The Finance Ministry has set up a working group consisting not only of officials and experts, but also of representatives of private business for making urgent decisions to develop the national financial market in medium- and long-term perspective.

I hope that this work will proceed smoothly and that the working group will discuss problems quickly and adopt the required decisions on time.

Thank you.