Putin calls for mechanism to subsidize loans to real sector of economy
NOVO-OGARYOVO. Feb 6 (Interfax) - President Vladimir Putin has issued orders to create a mechanism to subsidize loans to companies in the real sector of the economy for bolstering working capital and financing debt.
"A mechanism needs to be formulated to subsidize interest rates on loans to organizations for bolstering working capital and financing current debt," Putin said at a meeting on Thursday.
He said there are also plans to increase government guarantees for loans raised by companies to implement investment projects, including restructuring of current debt.
"The Bank of Russia has developed a number of instruments to support small and medium businesses. This primarily concerns companies that are engaged in non-resource exports, as well as those that use the mechanism of project financing," Putin said.
He expressed confidence that all these measures together will make it possible to make loans more accessible for the real sector of the economy.
Economic Development Minister Alexei Ulyukayev told reporters after the meeting that this refers to subsidies totaling tens of billions of rubles.
"About 30 billion rubles for agriculture, about 10 billion rubles for industry. But this is an issue that was not discussed now, these issues are being discussed at the anti-crisis commission," Ulyukayev said.
He said the government can find part of this money within the context of the redistribution of funding for government programs for agriculture and industry.
"And part through the funds that will be allocated from anti-crisis reserves - this is about 10 billion rubles for agriculture and about 5 billion rubles for industry," Ulyukayev said.