The government and Central Bank unveiled measures to stabilize the economy

the Government and the Central Bank of the Russian Federation issued a joint statement “On measures to ensure the sustainability of economic development”.

the Government and Central Bank continue to take swift action against the economic impact of coronavirus and volatility in global financial and commodities markets, said in a statement.

the Russian Economy possesses a sufficient reserve of strength and financial resources. The government and the Bank of Russia introduced a package of support measures to minimize the effects of these factors for the population and the economy.

the Government is coordinating budgetary and economic policies, and the Bank of Russia regulates the level of liquidity in the economy, controlling the banking and financial sector. The government guarantees the implementation of its commitments in the health sector.

the government and the Central Bank take measures to minimize the impact of the situation on citizens of Russia. The government and the Bank of Russia will implement a package of measures to achieve three priorities: ensuring financial stability, financial sustainability of the industries and sectors of the economy, the support of the population and regional budgets.

1. Ensuring financial stability

In the first week of panic in global markets from 9 to 13 March, the government and the Bank of Russia took a number of measures to stabilize the Russian financial market: the aborted purchase of currency on the Moscow stock exchange and started selling, the banks provided the necessary liquidity.

the Bank of Russia will continue to provide the markets necessary ruble and foreign exchange liquidity, to use regulatory measures for rapid adaptation of the economy to changing conditions.

2. Maintaining the financial sustainability of the industries and sectors of the economy

In the first place, support will be provided to airlines and travel companies. Because of the quarantine the tourism market and air travel reduced.

Travel to the end of the year are exempt from paying contributions to the reserve Fund of the Association “Turpomosch”. The Bank Russia eased the terms of lending companies in air transportation and tourism (without compromising the assessments of their financial situation). The government will provide state guarantees in this case.

the Bank of Russia eased requirements for lending and drug manufacturers and medical equipment.

in addition, the government will make a list of systemically important companies to monitor their financial situation and support if necessary.

the Government will expand a program of lending and guarantee support to small and medium businesses. Removed restrictions on the types of loans and industries and increases the amount of subsidy. The amount of subsidies on loans for a period up to two years increased.

the Government will introduce a delay in the payment of lease payments for a period of three months for small and medium business tenants of state or municipal property. Soften requirements when performing state contracts for vendors affected by the situation, soften and exchange controls for non-oil exports.

Authorities are preparing new support measures for other industries. The government will ensure stable operation of the retail industry: control of prices and stocks of socially important products will be provided short-term subsidized loans to replenish working capital. Zero import duties and expanded “green corridor” at customs for socially important goods.

3. Measures to support the population and regional budgets

Authorities will ensure the stability of incomes and preserving employment. The government introduces the payment of hospital for the Russians, were on mandatory quarantine.

In July, will begin payments to support families with children from three to seven years. The government intends to reduce budget expenditures, and regions will be supported to balance local budgets.