Large companies from the sectors affected by COVD-19 will also be able to use interest-free loans in Russia. This statement was made on Thursday, April 23, by Prime Minister Mikhail Mishustin at a government meeting.
“For this purpose, the rules for allocating subsidies to compensate banks for lost income on loans issued to small and medium-sized businesses to support employment have been adjusted,” the head of the country’s Cabinet of Ministers said.
According to him, the state will allocate 3.5 billion rubles for this purpose. At the same time, as Mishustin noted, the total amount of interest-free loans provided by banks to companies, including targeted ones for paying salaries, should reach 305 billion rubles.
The head of the Russian government also announced that the state will allocate 24 billion rubles for subsidies to banks to support system-forming organizations. The interest rate of such loans will be up to 5% per annum.
On April 20, Mishustin at a meeting with the Deputy Prime Ministers on April 20 instructed to quickly launch measures to support citizens and the economy. First of all, he called for providing financial assistance from the state to enterprises affected by the coronavirus. In this regard, it was proposed to expand the program of granting preferential loans for the payment of salaries to medium and large businesses. Under this program, VEB already provides guarantees and sureties of up to 100 billion rubles.
On April 15, Russian President Vladimir Putin announced new measures to support business during an address to the country’s citizens before a meeting with government members. In particular, the head of state suggested providing gratuitous assistance to support small and medium-sized businesses. Businesses will be able to spend the money they receive, including on paying salaries.
At the same time, Putin noted that interest-free loans issued to businesses to pay for employees were ineffective, as banks are reluctant to meet borrowers halfway. In this regard, he suggested providing such loans with Vnesheconombank guarantees. Such support should be at least 75% of the amount of salary loans.
The President also called for finalizing the list of strategic enterprises. According to Putin, it should include enterprises that are important for the country’s economy. These organizations need, as the Russian leader noted, to provide a new social credit product, soft loans to replenish working capital with state subsidies for the size of the key rate of the Central Bank of the Russian Federation.
As of April 23, there are 62,733 confirmed cases of coronavirus in Russia, including 4,774 in the last 24 hours. The total number of fatalities is 555.