ANNOUNCEMENT 21 Aug 2013In August 2013, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On August 21, 2013, the Government of the Russian Federation (according to Directive 1474-) approved the issuance in 2013 of 8 state guarantees fully covering the loans of 7 defence enterprises, as a part of the State Armament Programme 2011-2020. The total amount of the guarantees is RUB 34.4billion (USD 1.03 billion).
This state measure has the goal to expand defence enterprises' capacity to attract non-budgetary sources of funding (loans) and carry out state tasks related to the execution of the state defence orders when the federal funding is received in the form of deferred payments. A further advantage provided by the state is that the defence enterprises will not be required to put up additional collateral.
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.