TASS: Russian economy to demonstrate zero growth in 2016 – VTB24 CEO

Russia's economy will demonstrate zero growth in 2016, with real revenues down by 2%, Mikhail Zadornov, CEO of VTB24, a major Russian retail bank, said in an interview with the Vedomosti daily on Thursday, according to Russian news agency TASS.

"According to our forecasts, next year zero growth is expected in the economy. Real revenue decrease will be less than now, about 2%. People will begin to borrow more money, hence, credit portfolios will be growing next year, not only at VTB24 but at other retail banks too," he said, TASS wrote.

He said the crisis in the banking sector had followed the growth of the Central Bank's key rate. In his words, the situation in the financial sector was difficult but different from the economic crisis of 2009.

"Portfolios of small businesses did not shrink in 2009. Today, on the contrary, they are being reduced very rapidly. In this crisis, small businesses is the most severely hurt segment. Exporter, on the contrary, have benefited even more than during the previous crisis. Mortgage portfolios are growing, unlike the situation in 2009. Corporate crediting is on the rise too," he said.

VTB24, a subsidiary bank of the VTB Group, serves individuals, self-employed businessmen and small businesses. Its authorized capital stands at RUR 103.9 billion ($1.47 billion).