A new measure to support businesses and NGOs has been proposed by the President of Russia.
Banks that have joined the programme to offer easy loans to businesses and NGOs at a 2 percent rate will receive 5.7 billion roubles to make up for lost income. This directive has been approved by the Government.
The total amount of approved loans cannot be below 248 billion roubles. The new programme for credit financing to support entrepreneurs and preserve jobs was suggested by President of Russia Vladimir Putin.
Loans will be granted to companies in hard-hit industries, affected by COVID-19 and socially oriented NGOs. In addition to the low interest rate, they will be eligible for special repayment terms.
For companies that keep at least 90 percent of their employees, the loans and the interest costs will be forgiven – the state will foot the bill. If a company keeps at least 80 percent of its employees, it will only be liable for half of the loan and interest amount.