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Meeting with CEO of Promsvyazbank, Petr Fradkov

Meeting with the CEO of Promsvyazbank, Petr Fradkov.

Promsvyazbank CEO Petr Fradkov briefed Vladimir Putin on the financial institution's current activities and the creation of a core bank to conduct defense procurement.

President of Russia Vladimir Putin: Your institution must serve as the basis for our defense industry complex. I know there are developments and I would like to hear your opinion on the process and the overall work of the bank.

Please.

CEO of Promsvyazbank Petr Fradkov: Thank you very much, Mr. President.

You asked us to create a basic bank at Promsvyazbank for the military-industrial complex.

Today, we can say with certainty that the bank has taken a leading position both in terms of support for the regulations of public defense orders and in terms of loans to industrial companies. The status of base bank is provided for by law. In this sense, we have come a long way to, so to speak, institutionalize the Promsvyazbank as a fundamental bank for the military-industrial complex.

With regard to public defense orders, the bank now supports at least 60% of all contracts in this area. At the same time, the bank accounts for up to 50% of the rest; but it is of the utmost importance that, despite the active growth of these figures, we have succeeded in ensuring continuous support for public defense orders even if a large number of contracts have been received from other approved banks. Despite some, say, concerns about the continuity of this support that we had at the start when discussing how to start the bank's work, there have been no setbacks or problems. The state client, the Ministry of Defense, fully confirms that all support is continuous, and the tens of thousands of public defense operations that we carry out daily are maintained by our infrastructure.

From the point of view of the financing of defense sector companies, we can now say that we already have the largest portfolio of all the banks that have always been involved, that is to say that we are gradually assuming this function. Henceforth, the limits of loans to the defense industry - credits and guarantees - amount to more than 600 billion rubles. In addition, 430 billion of this amount has already been provided, which means that companies are already using the funds.

At the same time, I would like to draw particular attention, Mr. President, to the fact that the average rate of return on the portfolio is 7.7, which is a fairly good indicator. In addition, as a bank, we have developed our own additional preferential financing program for public defense orders and contracts under public defense orders; under this program, 120 billion rubles have already been allocated at a rate not exceeding 6.5. Of course, given the evolution of macroeconomic conditions, in particular the fall in the key rate, we will move on to reducing the cost of financing companies. We are in contact here with both companies and the Ministry of Defense.

Of course, we are not deviating from the hard work of the ambitious program underway to bring financial improvements to the defense industry. A government commission has been created under your decree to deal with this issue. As a defense bank, we are also involved in the recovery of a certain part of the assets for future restructuring. There are fairly serious indicators, figures, I will report on them separately.

In general, I would like to emphasize that the bank continues to develop as a universal bank. We also agreed to this at the very beginning, that the bank would be ...

Vladimir Poutine: A financial institution in its own right.

Pyotr Fradkov:… a fully-fledged financial institution, precisely to provide quality services to consumers. In this sense, we performed well in 2019. In terms of indicators such as return on capital, which is an important market indicator, we are among the top three public banks. We have a return on capital of 9%, which means that in general we try to work effectively from the point of view of such a principle of market banking, an instrument, despite the fact that we also solve special tasks fairly specific. .

For example, in terms of indicators such as the growth rate of assets, we ranked first, and now our assets amount to more than 2.2 trillion rubles and have increased quite significantly on the sole year 2019.

To be continued.

Attribution

Content translated by Earthy.news -

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