I.Metshin: “The furure of the city depends on business work”

(KZN.RU, November 13, Alena Miroshnichenko). The issues of crediting for the small and medium-sized businesses should be solved between credits recipients, banks and authorities. This opinion was sounded today by Ilsur Metshin, Mayor of Kazan, on the meeting of the Coordinating Council for development of the small and middle business in Kazan City Hall. The participants of the meeting discussed the situation on the debt financing and the intermediate results of concessional lending program for the small and medium-sized businesses.

Timur Nagumanov, the Representative under the President of the RT for the Protection of the Entrepreneurs’ Rights, Rustem Sibgatullin, the first deputy Minister of Economy of the RT, the director of the Department of business and competition development and the representatives of major Tatarstan banks and the business community took part in the work.

“The first priority is to develop the small and medium-sized businesses in Kazan. According to the researches, at the present time its activity decreases. The development of the small and medium-sized businesses slowed down, rates on credits ceased to decrease. In all researches the key factor of business activity is a low availability of financing. This problem was sounded by the President of the RT“, - Ilsur Metshin posed the problem.

During the first quarter of 2018 about 19% of the interrogated representatives of the small and medium-sized businesses asked the banks for getting credit that were closely to crisis level. In March-April of current year the Executive Committee accredited 4 banks-operators for the realisation of concessional lending program for stimulation of the crediting. This format of work is conducted for the first time.

“The concessional lending program of 2018 is valid for businessmen realising their activity in priority areas. They can receive credit by total sum up to 10 million roubles. The interest rate of the Executive Committee does not exceed 4,5% “, - Ildar Shakirov, the deputy head of Kazan Executive Committee, told.

As of 9 November 72 requests has been arrived to the Executive Committee of Kazan to the preliminary consideration, all of them are considered. 53 requests are previously approved by the Executive Committee, 18 requests are denied. 17 of 53 approved requests are received credits to total sum 111,5 million roubles. The credits will be received by the end of the year.

I.Shakirov spoke of three the most often met errors of businessmen when applying for bank: it was a misinformation which helped to conclude that businessmen used the bad financial ratings and the absence of sufficient collateral.

One of the key problems impeding program delivery is a low interest of the banks in it. The Mayor of Kazan agreed, that the program works defectively and the revisions of its realization are necessary for it. “Businessmen want to develop. At the same time 59% of Kazan businessmen say that it is difficult to receive credit“, - Timur Nagumanov noted. He emphasized that we should continually adjust the program in response to the changing realities.

“It important to be mobile and give the complete information on active municipal programs to the businessmen. The future of the city depends on business work“, - Ilsur Metshin added. “We should exchange the opinions, analyze how the system works. Today's meeting showed that it was necessary to take steps both on the part of credits recipients and on the part of those who give them and on the part of authorities. We will discuss with the Government of the RT these normative documents which should be accepted for the effective work programs and business development“, - Kazan Mayor summed up the meeting. The issues raised on today's meeting will be discussed on the next Council for Business Productivity to the President of the RT.