Mishustin: Russian government to launch program of support for pharmaceutical producers, distributors

MOSCOW. April 11 (Interfax) - The Russian government will support backbone enterprises in the pharmaceutical and medical industry, as well as suppliers of these products and pharmacy chains by providing bank guarantees with a preferential commission rate of 1%, Russian Prime Minister Mikhail Mishustin said at a meeting with deputy prime ministers.

"The government is launching a special program to support backbone enterprises in the pharmaceutical and medical industry, as well as distributors of such products and pharmacy chains. All of them will be able to get independent bank guarantees with a preferential commission rate," Mishustin said.

According to the Prime Minister, these subjects "will be able to obtain independent bank guarantees with a preferential commission rate: 1% for enterprises, with banks to be compensated up to 2%".

"A government decree has been signed, which establishes the rules for the reimbursement of such costs to lenders," the prime minister said.

He explained that the mechanism of independent guarantees allows to protection of transaction participants.

"If companies cannot fulfill their contractual obligations for any reason, or, simply put, they have no ability to pay, then the supplier will receive funds from the bank. Using such an instrument, pharmaceutical companies and pharmacies will be able to minimize risks," Mishustin added.