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The Russian Government has expanded the limit on 2 % per annum preferential lending programs for companies in the industries most affected by a coronavirus subject to the preservation of the jobs from 352 bln to 468 bln rubles. We recall that on the 23rd of June, in his state-of-the-nation speech to the citizens of the country, Russian President Vladimir Putin noted the demand for the program, which significantly exceeded initial expectations.
Under the framework of the expansion of the program, the amount of subsidies to banks has also been increased by 3.3 bln rubles (up to 15.75 bln rubles), as well as the limit on guarantees issued by VEB.RF — by 100 bln rubles.
According to the Minister of Economic Development of the Russian Federation Maxim Reshetnikov, to date, the banks have approved loans for 289 bln rubles in total, which will support more than 3 mln jobs.
This is the second expansion of the program, under the framework of which enterprises can get loans to resume operations at a reduced interest rate and write off the loan if employment is maintained. The program shall be implemented from June 1, 2020. (Government Decree No. 696 of May 16, 2020).