Bank of Russia discusses anti-crisis measures with business associations
A gradual decline in inflation will help businesses adapt to new conditions and ensure the affordability of long-term investment loans, Bank of Russia Governor Elvira Nabiullina said at a meeting with representatives of the OPORA RUSSIA organisation of small and medium business, the Business Russia public organisation, and the Chamber of Commerce and Industry of the Russian Federation.
She noted that small and medium-sized enterprises (SMEs) are more flexible than large companies. They will be able to adapt faster, find new partners and build logistics chains. ‘We consider it important to give some room for manoeuvre to private business by gradually reducing the cost of financial resources for everyone, not just for selected borrowers,’ the Bank of Russia Governor added.
The meeting discussed the development of loan support for SMEs, the easing of foreign exchange controls for exporters and importers, switching to transactions in national currencies under foreign trade contracts, reducing costs for accepting cashless payments through a wider use of the Faster Payments System, as well as other topical issues.
The participants in the meeting noted the relevance of the Bank of Russia's working capital loan programme, which allows borrowers not only to raise a subsidised loan, but also to refinance a previously received loan at a floating rate, and put forward a number of ideas for the development of the programme. As of 18 April, banks already used almost a half of the programme limit (165 billion out of 340 billion rubles).
Prompt support for businesses was also provided through the mechanism of loan repayment holidays. According to the banks surveyed, in March, entrepreneurs submitted 43,900 applications for loan restructuring, including 30,100 applications for loan repayment holidays.
Banks approve almost 90% of the applications, Elvira Nabiullina stressed. Over the month, banks actually restructured 25,400 SME loans worth 268.1 billion rubles.