Press Service

On increased concessional SME lending limits

On 7 July 2017, the Bank of Russia Board of Directors agreed on a 50 billion ruble increase of the aggregate lending credit on its loans, secured by Joint-stock Company Russian Small and Medium Business Corporation’s guarantees and extended to credit institutions at an interest rate of 6.5% per annum for their concessional lending to small and medium business in priority economic sectors.

The increased lending limit of 175 billion rubles will be funding in support of small and medium enterprises (SME) through loans from both systemically important and small banks, including regional lenders.

Authorised banks will distribute the increase of 50 billion rubles in the credit line in the following manner.

More funding will be made available to more regional pivotal banks and newly founded banks holding basic licences, to a total of 25 billion rubles. The credit line may be used to issue loans to SMEs in priority sectors without limitation as to loan types.

Systemically important banks will receive the remaining 25 billion rubles. They may use this credit line to issue loans to SMEs in priority sectors only for investment purposes.

The above-mentioned spending areas are anticipated to increase the share of regional banks in total Programme 6.5 funding, making credit more accessible to small business on regional and local levels and improving the availability of investment to SME in priority economic sectors.