ANNOUNCEMENT 19 Sep 2013In September 2013, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On September 19, 2013, the Government of the Russian Federation approved (according to Order No. 1671-p) the issuance of three state guarantees fully covering the loans of two entities ("Moscow Institute of Thermal Technology" and "Scientific-Research Institute of communication and control systems") operating in the defence industry. The total amount of the guarantees amounts to RUB 8.7 billion (USD 0.26 billion).
This state measure has the goal to expand the capacity of the defence enterprises to attract external sources of funding and carry out public contracts for which the federal funding is received as deferred payments. A further advantage provided by the state is that the defense 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.