The Prosecutor General’s office has found a lot of irregularities in the Corporation’s business development

According to the Agency TASS with reference to the official representative of the Prosecutor General Alexander kurinnogo, the office has identified numerous violations in the work of the Corporation. In particular, at the end of July 2014, the Agency of credit guarantees (formerly SMEs) received from the Federal budget of 50 billion rubles, but the targeted results to provide guarantees for lending to promising small and medium business have not been achieved.

Among other violations Kurennoy called incompatibility with the principles of openness, the procedure for providing guarantees for lending to entrepreneurs, the implementation of the company’s operations through partner banks for which the Corporation could not influence, since all guarantees were issued without the right of review.

According to the representative of the Prosecutor General, the Agency of credit guarantees also did not monitor the financial status of commercial companies – the recipients of guarantees, collateral, and compliance with the conditions of issue of guarantees. In addition, the Corporation failed to create a system of cheap loans to business.

At the end of December last year, the Prosecutor General’s office reported the claims to SME Bank, which in 2016 should be submitted to the Corporation for SMEs. In particular, the Agency was informed about the negative effects of a credit institution for development of small and medium-sized businesses. The Ministry said that the SME Bank provides preferential terms for loans to a limited number of SMEs.

In December the Prosecutor General office stated that the revision was related 2014 and 2015, i.e., the existence of the credit guarantee Agency.

The press service of the SME Bank then stated that the Bank considers published by the state office of public Prosecutor the information to be unsubstantiated and not documented. In addition, according to the press service, the Prosecutor General’s office was not sent to the Bank or its shareholder published the conclusions or orders to eliminate violations of the law.

In April 2015, President Vladimir Putin following the meeting of the state Council on development of small and medium businesses commissioned until 20 may 2015 to submit a draft decree to create a single Institute for the development of small and medium enterprises on the basis of the Agency of credit guarantees and SME Bank. In June, the President renamed the Agency of credit guarantees to the Corporation for the development of small business. It was assumed that the share of state participation in the Corporation will be reduced by at least 50% and one share, and the rest as a result of additional issue will be transferred to the Bank in exchange for 100% of SME Bank.