Vladimir Putin: Let's start from the beginning.

Georgy Boos: Mr Putin, in general we are in control of the situation. We have managed to somewhat reduce our wage arrears (if we compare one month with another); in December, this debt was less than in November, and in January, less than in December.

Vladimir Putin: Do you mean wage arrears in the economy in general or in individual industries?

Georgy Boos: In the economy in general. These arrears do not exceed 90 million roubles today. In November they totaled nearly 180 million roubles.

Vladimir Putin: In other words, you've cut them in half.

Georgy Boos: Yes. But I have to admit that one company accounts for a lion's share of these arrears - 80%. And only 20%, or 12 million roubles, are owed by all other companies combined.

Vladimir Putin: I see. And what could you say about public sector wages?

Georgy Boos: Our regional budget is debt-free. A number of municipal housing and utilities companies have some arrears, but no more than 1.5 million roubles put together.

Vladimir Putin: So practically speaking, you have almost no debts.

Georgy Boos: The situation is quite normal and manageable. These are companies that are undergoing reforms, or that have encountered some temporary difficulties... We are keeping an eye on every company.

Vladimir Putin: How is the construction sector?

Georgy Boos: We would have fulfilled your instructions to build one square metre of housing per capita during the past year had it not been for the crisis. As it stands now, we have produced 0.85 square metres per capita. If it were not for the crisis, we'd have produced 1.3-1.5 square metres, but now we are approaching 0.9 square metres.

We have changed our programme of support for all our initiatives in housing construction, as well as our regional housing programme. We have actually suspended the youth mortgage programme because it absorbed too much money, and have instead used this money to remove risks from banks and the construction sector so that loans continue to be issued for construction, and also to subsidise the mortgage interest rates to keep the mortgage programme going.

Vladimir Putin: Still, you have to restore the youth mortgage programme because it implies rather significant co-financing on behalf of the citizens, which is a positive factor for the entire sector. You should look into the problem once again, and maybe resume the elaboration of a joint programme together with the Regional Development Ministry.

Georgy Boos: We have not shut down this programme, but merely suspended it for the crisis period to use this money for backing the demand.

Vladimir Putin: But the youth mortgage programme is also aimed at supporting the demand.

Georgy Boos: Yes, but under this programme, a mere 1,300 flats could be purchased in the region, whereas now we are selling about 4,000-4,500 flats.

Vladimir Putin: Yes, but this category of citizens needs support more than others.

Georgy Boos: I agree, but right now we are short of money. I have brought a letter to show you, Mr Putin. We were developing dynamically and getting firmly on our feet, but in absolute figures transfers were going down, whereas taxes were growing, including those to the federal budget...

Vladimir Putin: Let's discuss this in more detail.