Agriculture Ministry adjusts loan interest rate compensation to 14.68%
MOSCOW. Jan 28 (Interfax) - The Russian Agriculture Ministry has adjusted the mechanism for compensating interest on short-term loans, raising the compensation rate to 14.68%, the ministry reported.
The new formula, which incorporates the Central Bank's key rate and the inflation rate in 2014, is contained in a draft government resolution.
Under the previous mechanism, which used the Central Bank refinancing rate, the average compensation rate was 8.25%.
The Agriculture Ministry originally planned to switch from compensating a portion of the loan interest expense based on the refinancing rate to one based on the key rate. However, that proposal was not approved.
The Agriculture Ministry is also proposing subsidizing 100% of the Central Bank refinancing rate for investment loans and loans received by small-hold farmers. In addition, the draft resolution provides for extending the investment loans for a term up to one year (for loan extensions agreed in 2015).
The government anticrisis plan also provides 50 billion rubles in additional allocations to the agricultural sector. The corresponding bill is to be prepared by February 27. This state support is being made available to counter seasonal risks.
The Finance and Agriculture ministries are responsible for drafting the bill.
Russia's agricultural sector will need 568.2 billion rubles in additional funds to 2020, according to the latest edition of the state program for development of the sector.
