The Russian Government has extended the state support for manufacturers of export-oriented agricproducts
15 May, 2020
The Government of the Russian Federation approved the Decree No. 677 as of May 14, 2020, providing that agricultural enterprises involved into advanced competitiveness agreements shall be enjoying the soft loans, even in case of shortfall in terms of total output throughout 2020.
Such agreements are one of the levers specified in the Federal project “Export of agricultural products”, which is being implemented by the Ministry of Agriculture. This mechanism makes accessible the loans at preferential rates in exchange for commitments to increase production of the items, which are in demand on foreign markets.
Previously, if a business does not achieve the targets fixed in the agreement, the bank revised the interest rate on the issued loan from preferential to commercial. According to the recent amendments adopted by the Government, this practice is to be suspended till the end of 2020.
The measure developed by the Ministry is aimed at supporting agricultural producers in the face of coronavirus epidemic spread. This should help preventing excessive credit burden on agricultural enterprises triggering their worse financial standing in 2020.