Bet on banks

the Pandemic threatens the lives and health of people, but it is equally dangerous to its impact on the economy, said Vladimir Putin. Common goal is to reduce the inevitable socio-economic losses. Therefore, simultaneously with the steps to prevent disease and to increase the capacity of healthcare decisions were made for the support of families, employment and income, for the promotion of business and strategic companies. And important role here at the Bank.

“a Credit institution has already assumed an important additional burden,” – stated Putin. Including the losses associated with a bailout. Banks directly work with citizens and enterprises, and from them largely to the support measures were effective, targeted, said the President. We are talking about the holidays on loans to citizens, whose incomes declined by more than 30 percent, subsidized loans to enterprises and other solutions. The head of state dwelled on the mortgage program, which until 1 November credit for new housing can be taken at the rate of 6.5 percent. The rest is compensated by the state for the entire term of the mortgage.

Banks have already started to accept applications for the issuance of such credits, said the President and asked to tell what has been done in order for the mortgage could be issued quickly, without unnecessary formalities, including remotely. “It is also important that the money were not only from developers and worked to support employment in related industries, across the chain of cooperation”, – he said. The construction of housing, infrastructure facilities in strict compliance with sanitary norms and requirements should be continued, Putin said.

He proposed to discuss how to implement the proposed measures. “We can see that there are obvious problems and difficulties when people are unable to vacation credit, and entrepreneurs with soft loans. They either immediately fail, or wasting time, or presenting obviously impossible demands, and it is not isolated cases”, – noted the President.

the decisions taken are not enough to declare, so you need to work out all the implementation steps that help came in time. “Abstract promises on the lives of people not affected, nobody needs, and the effect of such decisions, from allocation of resources will be low,” explained the President asked the government to analyze the situation and together with the Central Bank to quickly amend its regulatory framework. “All the tools support, including banking products, preferential programs should be as accessible as possible for those citizens and businesses for which they are intended,” he said.

to help banks quickly and objectively to decide on the issuance of preferential loans, the IRS launched a special e-mail service, and the head of state asked to report on how it works. And one fundamental requirement: to ensure the stability of the Bank system. “It is impossible to prevent the critical accumulation of the so-called bad debts, breakdowns and failures of banks”, – said Putin. To reduce risk, provide guarantees of the Ministry of Finance and VEB. The President asked to see what else can be done to ensure the reliability of the credit portfolio, without increasing the burden on borrowers.

“Banks are definitely faster statistics feel the pulse of economic life”, – said the head of state and asked them to share estimates and projections. The ability of the banks to ensure sustainable growth in the availability and volume of lending will be a critical factor in the recovery and development of economy, concluded the President.

Today, the banking sector is not among the affected industries and continues to operate stably, said first Deputy Prime Minister Andrei Belousov. But banks accumulate risks in the real sector due to the fall in economic activity. And delayed effect of accumulated risk can create problems in the autumn, he warned. Belousov also said that the additional Treasury bonds could reach 1.5-2 trillion rubles.

“Banks are the line of defense of our economy against shocks,” – said the head of the Central Bank. They entered this period in good shape and able to take a large amount of losses, provide vacation credit and continue lending, said Elvira Nabiullina. The accumulated margin of safety on capital – about 5 trillion rubles, there is a surplus liquidity of around 2.5 trillion rubles, “at the hands of” the banks have up to 8 trillion rubles, which they can obtain either in the market or from the Central Bank.

the Scale of the restructuring was unprecedented. “In less than a month of programs applications for rescheduling received more than in the whole last year” – compared Nabiullina. The percentage of approved applications for restructuring of loans to citizens for the week rose to 60 percent. In the case of small and medium – sized businesses- about 80 percent.

the Federal tax service until the end of April plans to connect the banks to the platform for the concessional lending, said the head of the FTS Daniil Egorov. From applicants to the loan was actually desired and the number of employees, applications are processed instantly.