Russian backbone companies can receive loans at preferential interest of 10% - PM

MOSCOW. March 11 (Interfax) - The Russian government has drafted proposals to subsidize interest on loans for backbone enterprises to top up their working capital at 10% per annum, Russian Prime Minister Mikhail Mishustin said during a meeting of the government's commission for the sustainable development of the Russian economy amid sanctions.

"We are preparing initiatives to support systemically important enterprises. Rules for granting subsidies for loans to replenish working capital have been drafted. They will receive loans at preferential rates of 10% by this mechanism," he said.

A representative of the Transport Ministry said earlier on Friday that the government had approved a decision on preferential lending at rates of 10% for the real sector of the economy and that the volume of financing for this program could exceed 1.5 trillion rubles.

"A draft resolution on measures to support enterprises, including transport system organizations, is currently being devised by the Russian government. It proposes financing in an amount greater than 1.5 trillion for 60 months. And accordingly, delivery of funds is expected to go through selected banks which will guarantee preferential lending at a rate of 10% per annum," Alina Malysheva, head of the Russian Transport Ministry's Department for Legal Support and Legislative Activities, said at a meeting of the Federation Council's Economic Policy Committee.

The government said on Monday that a government support program for backbone companies that was in effect as an anti-crisis measure in 2020 in connection with the pandemic was being resumed.

Among the support measures available to backbone companies that go through the corresponding selection process are "state guarantees necessary for restructuring loans and receiving new ones, as well as subsidies for reimbursement of costs," the government said in a statement.