Govt still undecided on extending duration of investment loans for dairy farmers to 15 yrs
BELOKURIKHA, Altai Territory. Feb 21 (Interfax) - A decision has not been made yet on increasing the duration of investment loans for dairy farming to 15 years.
"It has not been finally decided yet," Deputy Economic Development Minister Andrei Klepach told reporters when asked when a final decision might be made.
Loans are currently extended for eight years, taking into account three-year extensions. The interest rates on them are subsidized 80% from the federal budget and 20% from local budgets. The Agriculture Ministry is proposing to subsidize them 100% from the federal budget and extend the duration of lending to 15 years.
"We support the Agriculture Ministry's position," Klepach said. However, he does not believe that the federal government will manage to provide 100% subsidies on interest rates for 15-year loans.
"I think that, taking into account budget constraints, it won't be 100%. The wishes of farmers and the Agriculture Ministry are understandable, but there are budget constraints," Klepach said.
