MOSCOW, June 29 (RIA Novosti) - Russian Prime Minister Vladimir Putin told state-run banks on Monday to use new government funding to increase lending by at least 150 billion rubles ($4.8 billion) in July.
Putin said banks would be given up to 300 billion rubles ($9.6 billion) in new state support, as stipulated in this year's budget.
"In connection with the decisions taken by the government, the credit portfolio should increase by at least 150 billion rubles in July this year," the prime minister said at a conference on the drafting of a three-year budget until 2012.
He added that by October 1, banks with state participation are expected to increase lending by 400-500 billion rubles ($13-$16 billion).
Putin said that the expansion of credit involved Russia's largest banks, Sberbank and VTB, Gazprombank, the financial arm of Russian energy giant Gazprom, the country's agricultural bank, Rosselkhozbank, and VEB national development bank.
However, he said he could not demand the same from commercial banks with insufficient or zero state participation, referring specifically to MDM Bank, Uralsib Financial Corporation and Alfa Bank, all ranked among the country's top 10 banks.
He said the allocation of $9.6 billion in state guarantees would make it possible to attract up to 500 billion rubles ($16 billion).
