Russian Companies Borrow Over $50mn to Pay Salaries Amid Virus Crisis

Russian small and medium-sized businesses have borrowed a total of around $4 billion rubles ($51.6 million) from banks in interest-free loans intended to support employment amid the coronavirus crisis, the Ministry of Economic Development said Wednesday, according to Kommersant.

“According to monitoring data for 15 banks that have signed an agreement with the Ministry of Economic Development, as of April 21, about 4 billion rubles were issued for more than 1,800 applications for interest-free loans to support employment,” the statement said.

It was noted that applications from banks participation in the 0% financing program are still being received and the Ministry of Economic Development has already received 36 applications for a total loan amount of 27 billion rubles ($348.4 million).

Agreements have already been signed with 17 banks. Sberbank, Promsvyazbank, VTB, Alfa Bank, Russian Agricultural Bank, Asian-Pacific Bank, Sovcombank, Ak Bars, Kuznetsky, Chelyabivestbank, Sarovbiznesbank, RNCB, SMP Bank, Otkritie, Akcept Bank, Tomskpromstroybank, and Vladbusinessbank are among the lenders that signed the agreement, the ministry said.

Earlier, Minister of Economic Development Maxim Reshetnikov said that the government is ready to increase funding for the program of interest-free loans for paying salaries. According to an earlier decision, the loans were to be issued only to businesses that promise not to fire employees amid the virus crisis.

Scroll to Top