Govt can subsidize new investment loans in Agriculture in 2015
MOSCOW. Feb 5 (Interfax) - The Russian government can start subsidizing new investment loans in agriculture next year.
"We cannot yet give a 100% guarantee that we will start to subsidize new projects this year, but next year I can guarantee it," Deputy Prime Minister Arkady Dvorkovich said at the fifth congress of the National Union of Dairy Producers.
"This year our priority is to completely close the obligations that arose in previous years. The quicker we do that, taking into account budget restrictions, the quicker we can begin to subsidize new projects. I hope that we will at least start to subsidize some new projects this year, but next year it will be certain," he said.
The Agriculture Ministry commission for loans to agriculture companies decided after a meeting in December that the ministry would subsidize new investment loans after debt on subsidies for earlier loans was cleared.
Later, the Agriculture Ministry said the Russian agriculture industry could be left without new investment projects in 2014-2016.
The 2014 budget envisages 44.01 billion rubles for investment loan subsidies. This is due to increase to 46.63 billion in 2015 and 46.63 billion in 2016. "If 2013 debts are cleared, the amount envisaged in 2015-2016 is enough to fulfill the obligations undertaken, but without the selection of new investment projects in 2014-2016," the Agriculture Ministry said.
If new investment projects are selected then it is estimated that an additional 33.7 billion rubles will be needed for 2014 alone.
An inventory in 2013 of investment loan subsidy debt for loans allocated before January 1 2013 showed it to stand at 28.7 billion rubles. In the fourth quarter, 10.4 billion rubles was achieved by redistributing financing for government agriculture program measures. So, now the deficit for 2013 is 18.3 billion rubles.
To compensate that deficit the Agriculture Ministry plans to redistribute some of the funds aimed at supporting economically important regional programs and to compensate part of the interest rates on investment loans for the construction and reconstruction of beef cattle facilities, and partially through subsidies per liter of milk sold. The ministry reckons this will significantly reduce the deficit.
The deficit will also be compensated by government program reserves, which are estimated at 14.25 billion rubles.
