The meeting was attended by Minister of Economic Development Elvira Nabiullina, Minister of Education and Science Andrei Fursenko, Head of the Federal Antimonopoly Service Igor Artemyev, Head of the Federal Tariff Service Sergei Novikov, Head of the Federal Tax Service Mikhail Mokretsov, Moscow Mayor Yuri Luzhkov, Chairman of the State Duma Economic Policy and Entrepreneurship Committee Yevgeny Fyodorov, President of Opora Rossii Sergei Borisov, President of the RUIE Alexander Shokhin, representatives of the ministries and agencies which form part of the commission, as well as banks with government participation.

The Commission members have noted that budget allocations for various types of support of small and medium enterprises (SME) as well as the loans to that sector from the Savings Bank of Russia, Vneshtorgbank, the Development Bank (VEB), and other banks with government participation have been increased.

At the same time SME representatives still face problems with obtaining credit resources. The meeting reviewed how the decisions impacted the business climate and what problems still remain to be tackled.

The Commission members agreed that it was necessary to prepare a draft government decision to further facilitate access to government procurement by SMEs. The total volume of possible purchases by SMEs now stands at 400 billion roubles and the meeting confirmed that it had to be doubled.

A decision has also been made to change the lots for SMEs. They should range from minimal amounts to 30 million roubles for various types of government services and goods. The decisions to the effect are to be taken shortly.

The Commission reviewed lending and implementation of the corresponding programmes by banks with government participation. The members of the Commission were briefed on changes of credit portfolios in recent month with particular attention to the period of November and December 2008. The banks were directed to provide similar information for the period of January 2009.

Earlier the Russian Government had decided that the credit portfolio of banks with government participation for SMEs should increase by at least 2% every month and determined the priorities: crediting of SMEs, the agro-industrial complex and the defenсe industry.

After reviewing the implementation of SME crediting programmes the Commission concluded that the credit portfolios had registered very small growth or even zero growth in some areas. Government banks were asked to provide information explaining the reasons.

The Commission stressed that it is also a priority for the Commission on Sustained Economic Development which is reflected in the Government's anti-crisis plan. The Commission believes that there will be early changes in the dynamics of lending to SMEs.

The Commission also discussed lending by non-banking institutions. It reviewed the joint experience of the VTB-24 Bank and the Moscow Government in issuing micro-credits of up to 350,000 roubles per borrower with minimum administrative cost and with no collateral. Similar work in other regions also came in for discussion. The Commission confirmed the importance of developing this form of lending in the Russian regions. The Commission said that it would approach other regional executive bodies and conduct corresponding work to create micro-financing funds jointly with government-owned banks.

The representatives of the Finance Ministry reported that the draft law on consumer cooperatives was being readied for the second reading. The Commission said it would work out a consolidated position together with the State Duma deputies that would enable the use of credit cooperatives as effective channels for such loans. The other project - on micro-financing organisations - will be submitted to the Government within a month, the Commission believes.