Transcript of the start of the meeting:

Vladimir Putin: How are things?

Andrei Kostin: Mr Putin, we have started the year well. Since January 1, the growth rates of our credit portfolio for the real economy have surpassed 11%.

Vladimir Putin: You have much better figures than all other banks.

Andrei Kostin: Yes, but we are still making adjustments for the exchange rate. Nevertheless, these growth rates are still higher than the bank's board planned - two percent per month.

I'd like to emphasise that along with granting working capital loans, we are continuing to lend money for investment projects, including those in advanced technologies. One example is a rather big project in nanotechnologies in the Irkutsk Region. It is worth eight billion roubles, and we are giving it loans together with the Nanotekhnologii Company. Another major project is worth more than 40 billion roubles; it deals with the construction of 14 electrical substations in Moscow, which will substantially facilitate the supply of electricity to the city. There are also some other projects.

We have five venture funds that have lent money to 14 projects in different spheres, including laser technologies. The aggregate worth of their loans is about $100 million. In other words, we continue to give money for investment projects.

There are some problems linked with the bank's long-term resources and their value, but the announced government measures to support the banking sector will seriously help us resolve the problem.

I'd like to emphasise that these measures have not been adopted at the expense of the real economy, and that all funds received by the bank in any form - either as capital or as subordinated loans - will be channeled into the real economy.

Vladimir Putin: A total of 200 billion roubles have been allocated for your bank.

Andrei Kostin: Yes, this is tangible support, and will allow us to guarantee the bank's steady performance. However, these 200 billion roubles will be loaned to the real economy.

Vladimir Putin: At present you have many projects linked with the real economy. What do you think about the response of the real economy, industries, to the Central Bank's decision to adjust the exchange rate?

Andrei Kostin: I think that the consequences are different for different branches of the economy. Business is primarily stepping up in the export industries. We see that companies are starting to get enough proceeds there, and are funding their own projects on a par with us.

On the other hand, this is a signal to the growth of import-replacing industries. Additional funds are required in the food industry and agro-business. All in all, however, I believe these processes will benefit the Russian economy. They will allow it to receive additional incentives for development in the very difficult situation of declining world demand.

I think that our economy will develop faster after these measures.

Vladimir Putin: You mean that the markets will react accordingly?

Andrei Kostin: Absolutely. The shares of Russian companies have been growing a great deal in the last couple of days. Our bank's shares have added between six and eight percent. Needless to say, this is taking place after a dive, but still...

Today, investors are considering investing in some real assets, including Russian securities, rather than playing on the ruble-dollar exchange rate. I believe that we will see the positive results of this process.