So that financial organizations felt in crediting more confidently it is necessary to settle legislatively this situation and to carry out judicial reform. The third and most powerful factor which is necessary for renewal of mass corporate crediting is availability at banks of long-term resources. It is not a secret that monetary resources which are today at the disposal of banks are short-term. Even contributions of the population which now are the longest resource are involved for about three months. Before crisis this problem dared basically at the expense of attraction of money from abroad. Having lost such possibility, almost all banks have been forced to be switched to short-term crediting (about one year). Renewal of mass long-term crediting becomes possible only when this problem will be solved. Hardly probable it will occur before 2011.
The bank credit first of all the companies which could overcome the period of falling of economy which continue to work and expand the business. Among the most interesting industries is agro sector and adjacent sectors to it. The main criterion on which they judge the client is its ability to meet payments, possibility to serve the loan to predict the activity on long prospect. The basic product is crediting of a working capital of the companies which is given for the term up to a year. But with financially stable companies showing good results, we are included into projects for the term up to three-five years. The basic question which stands now before banks is to find good solvent clients. The main thing is not from what industry is the borrower; it is important that he effectively worked in present conditions and had possibility to return a loan.
From the beginning of year banks have started to credit more actively, we see positive dynamics in this segment. But mass long-term crediting will return on the market, most likely, not earlier than the next year.
Though our bank didn’t stop corporate crediting in crisis, the basic approaches, unconditionally, have changed. We have continued to work with those sectors of economy where we feel confidently and where our borrowers feel confidently.
Today bank’s basic direction is crediting of agro business and the industries connected with it. We give to agricultural productions such products as working capital replenishment, seasonal financing, still we consider investment crediting for purchasing of the equipment, agricultural machinery, commercial transport. Certainly, to borrowers serious enough demands are made. They not only study financial reporting of their clients, but also constitute together with them the forecast of their future activity. Thus, we estimate capability of the company to repay and serve credits throughout the financing period.
For example, at work with the agro companies they study overall performance of an economy, and also enterprise contracts on goods realization. Ability to meet payments of the company and its possibility depends on these two factors to serve the credit.
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