To support entrepreneurs during a pandemic, the government of Russia has introduced packages of special measures. Small and medium enterprises of the affected industries has provided deferred taxes, debts, insurance premiums, rental payments, subsidies for staff salaries. In addition, the SMEs were given the opportunity to restructure loans and take loans for the restoration of the business at the minimum rates. Read more about the support measures available to banks at “MK”.
In April, the Ministry of economic development published the list of affected industries. It includes air transport, culture, sports and recreational activities, tourism, hospitality, catering, dental practice, additional private education, organization of conferences and exhibitions, the provision of household services, retail trade of inedible goods and others. According to the Ministry, in these industries employs 5.3 million people.
a number of measures aimed at maintaining financial stability of companies. In doing so, they have to help the banks.
Since April at major banks has a program of so-called “three thirds”. It implies the deferral of principal and interest for 6 months, and a reduction in client interest rates at 2/3 of the prescribed credit agreement. Under such conditions includes loans issued prior to April 1, 2020. With the approval of the application for restructuring, one 1/3 from the current contract rate is covered by the government and the Bank, and only 1/3 will be paid by the borrower.
Many entrepreneurs have already used another measure of support – loans salary. In addition to subsidies from the state in the amount of one minimum wage for legal entities and individual entrepreneurs from the affected industries can get loans on salary for up to 12 months: in the first six months the rate would be 0%, and the remaining grace period and 2.5% per annum. To apply for such a loan does not require the salary project and collateral. Loans provide the salary of major Russian banks.
Both of these measures have used Irina Surnina, General Director of “Spring investments” from Nizhny Novgorod. “Our business is hotel and restaurant in Nizhny Novgorod, just the victim industry. We had big loans, because we get to the world Cup the hotel was built! We first designed the restructuring of a loan, and then loan under the salary were the first in our branch of VTB who received approval. Applications are approved over a couple of days and then the money credited to the account. If not for the efficiency of the Bank, I don’t know how we would have kept the number of employees and salaries. Staff we have retained 95%, but no one was reduced, not dismissed: people have��whether on their own, decided to leave. The average wage support paid without delay. We are not open yet. In the Nizhny Novgorod region restrictions haven’t been removed. How will the income, proceeds, we will repay the loans according to plan,” – said “MK” Irina Surnina.
With falling demand, a violation of the contracts faced by the logistics industry. “Communications, supply chains signed long-term agreements and projects were in the area of risk and uncertainty, – said the financial Director of OOO “Logistik L7″ of Perm Mikhail Minin, – In Russia the General decrease of cargo transportation amounted to 30%. The decline in transport services affected and our company. To retain staff, retain and support current clients and partners to maintain a system of contracts and business communication has become a major task during the period of restriction. So we went to VTB for a loan to pay wages at 0%. I think that was a very timely support which allowed us to preserve the state in conditions of instability of payments from contractors to ensure full and timely payment of salaries to staff”.
Our source shared experience credit. “We have been actively cooperate with various banks, lot of time passed the procedure of approval and receiving the Bank loan. Typically, the process from filing until issuance of money takes two weeks, a month and a half. We waited for the complex and large process in obtaining the loan on payday, even though he was needed urgently. But the money arrived into the account just three days after filing the application! This is the rare case when the decision on support of business, procedure and speed of implementation is not “sinking” in endless bureaucratic processes are simple and accessible,” added Mikhail Minin.
in addition to government measures to support banks during the period of the pandemic has offered its customers individual program of restructuring of loans.
“We are in the market since 1992 and worked during this time with different banks. The last 5 years working with VTB, and of all the measures which businessmen promised the Bank first supported us. We have restructured the loan, namely, was given a reprieve on the payment of principal for year interest only percent – said Edward Garn, owner of the clothing chain “the Dresser” in Tver. – Thanks to the delay we got the advantage on the background of a full stop of work. Other loans under the state support we don’t prepare, I hope to cope on their own”.
From 1 June launched the issuance of preferential credits “for restoration activities” with a rate of 2% per annum and write off the loan while maintaining the number of employees at a high level. To obtain such credit�� can companies from the affected sectors and socially oriented NGOs. The loan is calculated by a single formula: the number of employees multiplied by the minimum wage multiplied by 6 months. The final rate for the clients is 2%, the rest is subsidized by the government. If during the term of the loan, the company will retain at least 90% of employment, you will be eligible not repay the loan: the loan will repay the state. If the company will retain the number of employees at the level of 80% or more, you will be charged 50% of the debt and interest thereon. The programme covers the business of the affected industries. Within it, they are exempt from making payments until December 28, 2020. When you complete the indicated conditions, the period of grace may be extended. Orders can be placed on a simplified set of documents.
a Loan under this program of state support to VTB issued by the company MZ5 Group from Kirov, which is one of the largest manufacturers of sofas in Russia. Borrowed funds the company plans to pay wages to employees. “Very effective, appropriate and well-planned decision of the government. It hits all targets. The company receives real help in the restoration business for a very decent amount. The bulk of the amount we will spend on salaries, it is possible in the framework of working capital. This measure prostimulirujte us not spending cuts, which we inevitably would have had to do – says the financial Director of the company Alexey Poptsov. In the end, everyone wins: the country will receive the preservation of employment, employees will be paid salaries, and the company will receive real help. More such proposals made by the government, and then coronaries will pass quickly. By the way, the Bank also tried. The pace was wild. For medium and large enterprises the process of obtaining a loan usually extends for months, and everything is done for two or three days.”
a Separate set of measures of state support for the backbone enterprises from the list of the Ministry of economic development. Among financial instruments – soft loans for working capital. Such loans are provided at concessional rate not exceeding 5% per annum for a period of one year and the loan amount does not exceed 3 billion rubles.
