Putin promised small business money to pay salaries

President Vladimir Putin in his address to the Russians during a meeting with the government urged to include small and medium-sized companies-food industry to the list of organizations that can count on financial assistance from the state. Companies on the list, he said, you need to directly allocate funds for payment to employees.

In the list of the most affected sectors, which are already present enterprises in the sphere of public catering, tourism and hotel business and other, you should add non-food retailing, Putin said.

“they also have enough problems right now,” said he.

Small and medium business, the most affected by the pandemic coronavirus proposed to make payments on the solution to “the current, most urgent task” – payment of wages in April and may. The amount of financial assistance will be calculated based on the number of staff on April 1, at 12130 rubles per one employee. While SMEs will have to fulfill the condition: to keep the employment at least 90% of the authorized strength at the beginning of the current month.

Putin called on to make an appeal for such assistance is easy and convenient for business, remote, with no queues and in a hurry”. Apply, by its sloam will be released may 1, and the financial support from the state for April will be credited to the state since may 18. Funds for may will come in June, Putin explained.

Companies from the list backbone is proposed to issue soft loans for working capital – purchase of raw materials and components. Rate on such loans will be subsidized by the state in the size of the key rate of the Central Bank. Consequently, the real cost of credit for companies will be 6% below market. Half of this loan will be secured by state guarantees of the Ministry of Finance.

Individual assistance will be available to airlines in the amount of 23 billion roubles for leasing of aircraft, working capital, salaries and payment of aircraft Parking.

the Regions will receive 200 billion rubles to ensure the “sustainability and balance of regional budgets”.

Putin’s address on coronavirus: online broadcast

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Jennifer Alvarez is an investigative journalist and is a correspondent for European Union. She is based in Zurich in Switzerland and her field of work include covering human rights violations which take place in the various countries in and outside Europe. She also reports about the political situation in European Union. She has worked with some reputed companies in Europe and is currently contributing to USA News as a freelance journalist. As someone who has a Masters’ degree in Human Rights she also delivers lectures on Intercultural Management to students of Human Rights. She is also an authority on the Arab world politics and their diversity.