OREANDA-NEWS. December 24, 2007. Sergei Krjukov, Chairman of the Managing Board of the Russian Bank for Development took part in VIII Moscow International Bank Forum. In his report on the best practice of international financial institutions in the area of SME loan support implemented by RBD S.Krjukov emphasized that "small business develops very slowly without governmental support ". According to Mr.Krjukov, governmental support implies both financial measures: privileged taxation and interest rates, guarantees for small business, and creation by the government favorable environment for this sector of economy. World economies evidence of significant influence of small and medium-sized business on creation of new jobs, middle class generation, demand increasing, and promotion of new technologies.
 
Talking to the participants of the forum, S.Krjukov underlined the non-conformity of the level of small business development with the basic needs of the country’s economy. "A share of small enterprises in Russia’s GDP is 17%, while this figure reaches 50-60% in the developed countries", - he said. The very measures of governmental support shall be of great importance for SME growth.
 
Talking about the activities in the above area the RBD’s Head reminded the audience that the Bank "carries out its activities on the principal of non-competitiveness with commercial financial institutions, based on the two-tier lending procedure" - RBD grants long-term targeted funding to regional commercial banks, which, in their turn, use the given funds for small and mid-sized business on the strictly regulated terms. He said that in the structure of RDD’s aggregated loan portfolio this program’s loan amount to 50%; and total loans over the period the Bank program’s implementation exceed RUR 14 billion.
 
The Chairman of the Managing Board of the Russian Bank for Development spoke in particular on the Bank’s role in small business loan support within the framework of a new State Corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)". The basic tasks within the given work are to enlarge volumes of lending to regional counterparty banks, subjects of infrastructure, supporting small and medium enterprises, and extension of coverage of the regions with the above program. Alongside with it it is required to build a well-defined system of interaction between regional and municipal executive bodies, as well as increase of influence on creation of loan portfolio sector breakdown in the line of enlargement of industry, transport and construction sectors, and the sectors, which has science technology and innovation potential.