ANNOUNCED AS TEMPORARYNo
On August 14, 2012, the Government of the Russian Federation approved Resolution No. 825. It establishes the rules for the issuance of state guarantees on companies' loans and bonds used for the realisation of investment projects and other projects approved by the state.
The state guarantees are aimed at ensuring a sustainable economic development and at creating an effective mechanism for state support of companies that use loans to finance their operations. The state guarantees secure loans or bonds with maturity between 3 and 7 years, which are used to finance the operations or capital investment of Russian companies or to repay their existent loans and bonds. The legal document also stipulates that the state guarantees provide coverage for loans, extended either by the state financial corporation ''Vnesheconombank'', or by Russian banks in possession of a general license, issued by the Central Bank of Russia. The state guarantees provide a partial coverage for loans or bonds denominated in Russian roubles or US dollars of up to 70% for strategically important companies in the defence sector and of up to 50% for all others.
With Resolution No. 420 of May 15, 2013, the Government of the Russian Federation prolonged the validity of Resolution No. 825 of August 14, 2012 for the whole year 2013.
The Federal Law On the Federal Budget for 2013 and the Planning Period for 2014-2015 specifies the issuance of state guarantees at the amount of 110.5 billion Russian Roubles in order to secure corporate liabilities with maturity after January 1, 2016.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
⚑ Please report this page in case you detect an inaccuracy in its content.