ANNOUNCED AS TEMPORARYNo
Interest payment subsidy
On April 2, 2014, the Government of the Russian Federation improved, with Decree Nr 256, the terms of interest payment subsidy program for investment loans taken out by milk producers. The program targets agricultural producers or agriprocessing busiinesses. Eligible for subsidisation are loans with maturity term of up to 15 years, used to purchase equipment, specialized transport, young cattle, to convert vehicles to gas fuel and to construct and modernize animal husbandry, feed production and agriprocessing facilities.
The federal government reimburses the regional governments the amounts spent on interest payment subsidies up to the refinancing rate set by the Russian Central Bank (8.25% in 2014). The regional governments, in turn, are required to cover interest payments of end users up to the refinancing rate plus 3%.
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.
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