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Russian banks approved preferential loans at 2 % per annum to enterprises from the affected industries and socially oriented NPOs for a total of 289 bln rubles, these funds have helped to support more than 3 mln jobs. This was announced on the 29th of June by the Russian Minister of Economic Development Maxim Reshetnikov at the meeting with the Russian Prime Minister Mikhail Mishustin concerning the situation on the labor market.
“Enterprises in the affected industries, as well as the manufacturing enterprises hinging on the consumer market — garment industry, furniture trade, production of children's goods, as well as socially-oriented NPOs — they can contract a loan, and if they save at least 90 % of jobs as of March 1, 2021, these loans will be written off, repaid at the expense of the federal budget in essence,” the Minister said.
He recalled that according to the President’s instructions, the order prepared by the Ministry of Economic Development to increase the limits of this program, which has now been increased to 468 bln rubles, was reviewed last week. “We must say that banks have already approved loans for 289 bln rubles, therefore more than 3 mln jobs have already been supported,” Maxim Reshetnikov said.
“The programme is being actively implemented, and we can see that the figures and the limits set will be in demand by the entrepreneurs. This is an important element of employment stabilization not only at the moment but also in the whole of 2020 — the beginning of the year 2021,” the Head of Department concluded.
We recall that following the terms of the program, no interests will have to be paid monthly – they will be capitalized, i.e. added to the principal amount and paid at the end. Also, under loan agreements, a guarantee of 85 % of VEB State Corporation is provided.
“Legal entities and individual entrepreneurs who have employees and operate in the affected industries, as well as in the industries producing goods directly to the consumer market, will be able to get a loan.
For micro- and small enterprises, carrying out activities shall be confirmed as an operating or additional type of activity, for medium-sized and large — according to the operating activity. Socially oriented non-profit organizations, regardless of the type of economic activity, can also participate in the program.