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Central Bank’s key rate to decline over time — Putin

Anton Batakov, the member of the Executive Board of the Union, approached the President with a proposal at the congress to subsidize construction of logistical infrastructure and hubs as part of a separate logistical mortgage program

MOSCOW, April 25. /TASS/. The key rate of the Central Bank will be lowered over time, Russian President Vladimir Putin said at the congress of the Russian Union of Industrialists and Entrepreneurs.

"You know banks now are actually extending [loans] at floating rates normally. If loans are borrowed on the basis of 16% of the key rate, then as the changes occur, and I am confident changes will be, I am looking forward to that…" the President said. "But this will definitely take place, this is simply based on objective trends evolving in the economy. And if it is so and you use floating rates, then the rate will also go down as projects are progressing," Putin noted.

Anton Batakov, the member of the Executive Board of the Union, approached the President with a proposal at the congress to subsidize construction of logistical infrastructure and hubs as part of a separate logistical mortgage program.

"This is again the issue of budget capabilities. This is because all that are subsidies related to budget expenditures. The government is also proactively working on that now. But I agree with you. All these things of the infrastructural nature, supporting logistics, certainly, this is important, attention should be paid to that," Putin answered.

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