Russia’s ROSSELKHOZBANK (Russian Agricultural Bank; RSHB) has cut the interest rate on credits provided to agribusinesses by 2.0% to 14% as part of the national agricultural program. This happened after Russian President Vladimir Putin drew attention to the RSHB «clearly overstated» interest rate. A spokesman for the Russian Agriculture Ministry is convinced that it is very important for agricultural producers not only to reduce interest rates, but also to make the credit issuance procedure easier. RSHB was established in March 2000 in accordance with a presidential decree to use the bank as a national credit and financial system to provide services to Russian agribusinesses. The bank is fully owned by the state. According to the INTERFAX economic analysis centre, as of January 1, 2006 the bank had R62.6 billion in assets (19th place) and R10.9b in capital (17th). The bank reported its credit portfolio of R50b in early 2006. RSHB is to extend a further R100b in credits in 2006.
Source: VEDOMOSTI, March 20, 2006
