Upon the instructions of Prime Minister Dmitry Medvedev, the Ministry of Industry and Trade has started implementing a state support programme for soft auto loan issues from July 1, 2013.
This programme aims to support the national automotive industry by encouraging demand for passenger cars and light commercial vehicles with a maximum loaded weight of 3.5 tonnes by issuing auto loans to individuals at rates constituting the difference between loan-agency rates on comparable auto loans (in terms of their periods, sums and first-installment volumes for individuals) and two-thirds of the Central Bank of Russia refinancing rate, as of the date of the loan issue, with the subsequent compensation of loan agencies for their revenue shortfalls at the expense of the federal budget.
In November 2013, the Government is expected to approve the regulations for the allocation of federal-budget subsidies to compensate loan agencies for their revenue shortfalls during the issuance of auto loans to individuals in 2013-2014.
Pending the approval of regulations for the allocation of subsidies, loan agencies shall confirm their decision to take part in the programme by submitting written statements on their intention to join the programme to the Ministry of Industry and Trade until September 1, 2013, on the basis of their own risk-assessment studies.
It is expected that the implementation of this programme will make it possible to expand and stabilise car production and sales volumes in Russia, to preserve jobs, and to provide employment to the staff of national automotive companies and companies in affiliated sectors, and to provide the population with more favourable opportunities for taking out auto loans.
Source: Ministry of Industry and Trade
