NOVO-OGAREVO. Jan 17 (Interfax) - The volume of loans allocated by the VTB Group (RTS: VTBR) with the framework of the state defense orders program may double in 2013, VTB President and Chairman Andrei Kostin said at a meeting with Russian President Vladimir Putin.
"We increased the loan resources that we offered military companies by 82 billion rubles, or 37%, last year and the overall volume today exceeds 303 billion rubles," Kostin said.
A significant share goes toward lending for state defense orders, he said. "In 2011 and 2012 the volume of loans allocated by the VTB Group within the state defense order program was about 155 billion rubles. If the parameters for state defense orders this year will be as dynamic (and we are sure they will be) then this amount will double in 2013," Kostin said.
"There are tough rates on this type of lending, they are easier than market rates and are defined as Central Bank refinancing rate plus 1.5% - this is an unconditional requirement that is implemented on state defense order lending."
"And of course, it is important that these funds go towards upgrading production and on the production of advanced technology and machinery, which largely surpass international designs," Kostin added.
Commenting on military mortgages, he said "from last year our consumer lending division started lending to the military, or providing military mortgages."
"Last year over 2,000 loan totaling 3.5 billion rubles were provided. This year we plan to increase the volume of loans allocated four-fold to around 8,000 totaling over 15 billion rubles," he said.
"The terms offered by the VTB Group are the most attractive on the market: the rate for the first year is 8.7%, the down payment - 10% and the amount allocated is a maximum of 2.25 million rubles."