Loan rates may return to pre-crisis level in 2010 – VTB CEO

"Certainly, banks should proceed from economic realities and financial sector fundamentals. At the same time, they should respond to economic demand and policy of the Central Bank and the government," he said.

VTB will bear that in mind, Kostin said. "We always correlate the interests of our bank with the interests of borrowers and the economy at large. I think we will stick to this policy," he said.

VTB will enlarge crediting of citizens by 25% in 2010, Kostin said.

"The credit portfolio has grown by 11%, and we plan to enlarge crediting of citizens by 25% this year," he said.

Besides, the bank will issue loans to medium businesses, Kostin said. "We think that big business has other financing sources, and medium business is underfinanced. Thus, crediting of medium business will increase two-three times within the next year," he said.

In the opinion of Kostin, loan rates will return to the pre-crisis level this year. "We keep reducing loan rates, in correspondence with market trends. If inflation continues to shrink, rates may be back to the pre-crisis level in 2010," he said.

"We will continue to issue loans to large and smaller enterprises," Kostin noted.

VTB net profit stood at 28 billion rubles in 2009, he said.

"We summed up preliminary results by Russian accounting standards yesterday. The indicators appeared to be better than expected. Net profit stood at 28 billion rubles," Kostin said, Kazinform cites Itar-Tass. See www.itar-tass.com for full version.