Medvedev: Chechnya needs to develop the real economy

Dmitri Medvedev, the president of Russian Federation, is paying a visit to the Chechen republic. He has pointed out that good results are being achieved in the struggle against banditry, ITAR TASS reports.

RIA Novosti cites his words regarding the economy of the region: "It used to be about the reconstruction of the real economy, now we have to develop it" - he said. "State financing will probably be needed for this development, and perhaps some preferences also" - added the president.

Speaking about agricultural development, Medvedev pointed out that some of the credit interest should be subsidised by the state, partly because the technical equipment of the sector is very out-of-date.

The president drew attention to the program for the development of Chechnya for 2008-2011. The total amount of financing comes to 120 billion rubles. He has said that it should be checked how the finances were spent.

Also, Dmitri Medvedev visited Tsentoroy, where he laid flowers at the tomb of the first Chechen president, Akhmad Kadyrov, Interfax reports.