The agency has prepared a draft according to which the subsidy amount for preferential loans will not exceed 50% of the Central Bank’s key rate.
The corresponding document has now been published on the official portal of draft regulatory legal acts.
The developers clearly state the reason for this decision: primarily, the lack of additional funding sources and the shortage of budget funds necessary for implementing the preferential lending program.
Simply put, the government lacks the funds to implement the subsidy program at an expanded level, so it’s not surprising that support is gradually being reduced. Reducing the subsidy amount to half the Central Bank’s key rate is intended to help reduce the burden on the federal treasury.
It’s worth noting that the state budget has been running a deficit for several years now, and this is also one of the obvious reasons why virtually all agencies are having to reduce their support for their sectors.
The new terms for subsidizing preferential loans are expected to affect both investment and short-term loans issued since 2017. Furthermore, they will certainly apply to all future loan agreements.
In addition to the subsidy amount, the maximum interest rate for borrowers on preferential loans may also change.
Currently, it ranges from 2% to 9.5%. Under the new rules, it will be 50% of the key rate plus two percentage points. With the Central Bank’s current «key rate,» this yields 9.25%.
There are few, but some, exceptions to the new program rules. Farmers in border regions will retain the increased level of support: the state will subsidize 90% of the key rate, and the maximum interest rate for borrowers will not exceed 3%. The terms of previously issued loans for these regions will remain unchanged.
Furthermore, the preferential regime will remain in full force for investment loans aimed at the construction, reconstruction, or modernization of feed and food additive production facilities.
However, for new loans in these areas, the interest rate will be calculated according to the general rule.
This isn’t the first time we’ve seen initiatives that would tighten the terms of state support for farmers.
Just a month ago, the ministry proposed banning subsidies to joint-stock companies that had paid dividends over the past two years and to limited liability companies that distributed net profits.
This could also significantly narrow the pool of potential recipients of assistance.
