Russia’s government to back loans businesses make to pay wages – State Duma
MOSCOW, April 17 (RAPSI) – Russia’s State Duma has passed in the third final reading a bill providing state guarantees to businesses amid the coronavirus pandemic, among them those concerning funds enterprises borrow to pay wages and salaries, a statement of the lower house of Russia’s Parliament reads.
The proposed changes are to raise banks’ interest in providing loans to corporate entities under state guarantees of the Russian Federation in cases defined by the federal budget law as it is necessary to meet pressing challenges of prevention of downturn and economic uncertainties, according to the explanatory note to the bill.
The amendments are to be introduced to the Budget Code.
Chair of the State Duma Committee on Budget and Taxes Andrey Makarov has noted that currently banks are obliged to hold reserves with respect to the loans they make, what puts caps on their loan capacities. The new provisions are to facilitate provision of funds to enterprises and individuals in urgent need of cash in the present difficult situation.
Among other proposed changes are those allowing interregional budgetary loans and permitting regions and municipalities to issue debt securities notwithstanding their credit standing.