RAB Supervisory Board Discussed Preliminary 2008 Results
OREANDA-NEWS On 02 March was announced, that on the Supervisory Board of Russian Agricultural Bank met to discuss the Bank’s 2008 preliminary results. The meeting was held under the direction of First Deputy Prime-Minister of the Russian Federation and Chairman of RAB Supervisory Board Victor A. Zubkov.
With the capital increase in 2008 RAB has gathered significant momentum in lending. Throughout 2008 the Bank’s loan portfolio has grown by almost 60% and reached RUR 466 bln. The volume of loans extended totaled RUR 333.6 bln – a 35.2% growth, as compared to 2007.
The majority of loans were extended in the framework of the Federal Program on Agribusiness Development 2008-2012. Namely, over RUR 255 bln were allocated in 2008 in line with the Federal Program, including short-term loans totaling RUR 78 bln, investment loans – RUR 17 bln and loans for construction, refurbishment and modernization of animal breeding complexes – RUR 15.9 bln.
The Supervisory Board also discussed the necessity of coordinating terms and volumes of agribusiness lending with Ministry of Agriculture of the Russian Federation, improving structure and quality of the Bank’s loan portfolio and enhancing NPL management.
Russian Agricultural Bank 2008 results will be approved after presentation of the audit report on the Bank’s consolidated financial statement for the year 2008 and the Bank’s annual report.
The Supervisory Board discussed RAB activity on financing of grain purchase and commodity interventions. Such activity ensured the stability in the grain market and allowed to maintain the adequate level of proceeds of agribusiness producers. Nevertheless, the payments mechanism should be further optimized, primarily through decreasing term of payment for the grain supplied. RAB also plans to start financing milk-powder purchase and commodity interventions, which will start in May 2009. By then one should make the whole procedure consistent, transparent and more efficient.
The Supervisory Board also discussed the new strategy of RAB. The latter should define RAB mission, objectives, targets, key figures and performance criteria for a long term.
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