It is not reliable prevents Oleg Viougine

With the crisis, RMD has changed size and strategy. Become the second largest Russian private bank since its merger last summer with Ursa, a major network in Siberia, approach with caution the resumption of the credit market. For some people anticipate a boom. "But those who say to expect a strong increase did not see it even in their own activities", said Oleg Viougine, Chairman of the Board of Directors of MDM and one of the most respected figures in the Russian banking environment.

The revival of the credit market remains low for the time being. This is the sign of a recovery still uncertain economy but also, according to Oleg Viougine, confirmation of the emergence of a new model in the banking sector. Russia climate is yet to lower rates, initiated by the Central Bank but also by Sberbank, the first network of the country. Where the optimism of authorities in anticipation of a general increase in the portfolio of the banks of 15-20 in 2010. An expected increase mainly from the second quarter. "Certainly, some banks will reconnect with their aggressive strategy from before the crisis, taking risks and granting loans easily, without effective control over the financial situation of their clients.". This will push the market higher, recognizes Oleg Viougine. However, MDM, like many other banks, chose a different approach. We have enough capital to fuel our growth some 600 billion rubles, or $ 15 billion euros, Editor's note. But it will not come immediately because it will be based on a better knowledge of borrowers and a stable relationship in the long run with them. "A strategy that, now more prudent and restrictive, reveals a maturity risk.

"Low quality of the application."

For the moment, while some signals indicate a revival of the Russian economy, "the quality of the application remains low on the borrowers", reflects Oleg Viougine: few viable companies but many companies in difficulties and need urgent cash. The situation is similar for loans to individuals. If RMD has launched a programme for credits to use short term, it is not his priority. Consequence: MDM, which, as other banks cut rates (between 10 and 15 for business, more than 20 last year), has not yet saved the credit recovery. The last increase monthly business date of August 2008. After having declined significantly, are since stable.

MDM is equally cautious with regard to bad debt. The Central Bank is reassuring: level, percentage, estimated at 5.2 of the total portfolio of loans in December, should finally not exceed 11 by the summer (from the 25 advance in the fall), with an increase in the first half then a decline by the end of the year. "These estimates are based on the Russian standards." It is not reliable, prevents Oleg Viougine. There are certainly improvements. But many problems identified by the crisis have been covered by the restructuring of the debts. Some doubtful disappeared from statistics but they are likely to re-emerge later.

MDM, which the official proportion of bad debts is approximately 15, says have given priority to commercial considerations, limited restructuring (7 of its portfolio), and initiated legal proceedings deemed non-viable loan (10).