Russian government endorses decision to issue SMEs soft loans at 3-4.5% for investment goals

MOSCOW. Aug 17 (Interfax) - The Russian government has approved a resolution on the allocation of soft loans to small and medium-sized enterprises (SMEs) for investment purposes at 3-4.5% per annum at the current rate of the Central Bank of Russia (CBR), the government press service said.

Funds for restructuring of production will be allocated at a rate of 4.5% per annum, while funds for development will be issued at 3%.

The term of the preferential lending program will last for three years. The loan will be available for 10 years.

Earlier, commenting on the terms of the new SME support measure, Economic Development Minister Maxim Reshetnikov said that the grace period on loans will be 5 years, and the rate will depend on the size of the enterprise. "During the grace period for medium-sized businesses the rate will be 3%, for small and micro-businesses - 4.5% at a current key rate of 8%," Reshetnikov said.

Soft loans will be issued to small and medium-sized enterprises working in processing of agricultural products, the logistics and hotel businesses, the government's press release said.

Funds received at a preferential rate can be directed to the purchase of equipment, overhaul of production facilities or launch of new production.

It is envisaged that by the end of 2022, the volume of loans issued will amount to about 50 billion rubles.