Bank of Russia expands support of SME lending and emergency lending to aid and maintain employment
In order to provide additional assistance to small and medium-sized enterprises (SME), the Bank of Russia has made a decision that the calculation of the limit established under the programme of Bank of Russia loans granted to support SME lending may comprise the following:
— outstanding debt on loans extended to leasing companies for purposes related to property leasing to SMEs;
— outstanding debt on loans issued to factoring companies to finance SMEs under factoring agreements.
Moreover, since the Government of the Russian Federation introduced amendments to its Resolution No. 422, dated 2 April 2020,1 for the relevant subsidising procedure to embrace any legal entities and individual entrepreneurs, and not only SMEs, the Bank of Russia has also made a decision to amend the programme of Bank of Russia loans granted to support emergency lending to aid and maintain employment. These amendments imply that, in addition to the 150 billion rubles already allocated from the overall limit of 500 billion rubles in order to ensure lending to SMEs for urgent needs to aid and maintain employment, the Bank of Russia will allocate another 50 billion rubles for similar purposes for borrowers that neither have the SME status, nor are systemically important organisations.2
1 Resolution of the Government of the Russian Federation No. 422, dated 2 April 2020, ‘On the Rules for Subsidising Russian Credit Institutions from the Federal Budget to Compensate for Lost Income on Emergency Loans Granted in 2020 to Legal Entities and Individual Entrepreneurs to Support and Maintain Employment’.
2 The term ‘systemically important organisation’ is defined in Resolution of the Government of the Russian Federation No. 582, dated 24 April 2020, ‘On the Rules for Subsidising Russian Credit Institutions from the Federal Budget to Compensate for Lost Income on Loans Granted in 2020 to Systemically Important Organisations to Finance Their Working Capital’.
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