Reference
This document was drafted by the Ministry of Finance and is based on the Federal Law on the Federal Budget for 2013 and the Planning Period of 2014 and 2015.
The directive will ensure the implementation of state defence orders, not only within the expenditure limits set by the federal budget for these purposes, but also through loans secured by companies involved in the defence industry under federal state guarantees for a period of five years, and which provide for defence contractors to fulfil the obligations to repay 100% of the loan amount.
The directive provides for eight state guarantees in 2013, totalling 34.4 billion roubles, for loans secured by seven joint-stock companies:
- Viktor Makeyev State Rocket Centre – 7.2 billion roubles;
- Naval Underwater Weapon – Gidropribor Concern – 1.8 billion roubles;
- October Factory in Tambov – 2.1 billion roubles;
- Pella Leningrad Shipyard – 1 billion roubles;
- Kupol Electromechanical Plant in Izhevsk – 8.6 billion roubles;
- Communication and Control Systems Research Institute – 5.5 billion roubles;
- Sozvezdie Concern – two guarantees in the amount of 8.1 billion roubles.
The implementation of the directive will enable defence contractors to secure loans under state guarantees to credit institutions without providing additional collateral for the performance of state defence procurement.
Government guarantees also expand the opportunities to secure extra-budgetary sources of funding for state defence procurement contracts, the financing of which is provided from the federal budget through deferred payments.