The Government of the Russian Federation is extending federal support for businesses by providing an option of state guarantees for loans and bonds taken or issued to finance infrastructure projects. A decree to this effect has been signed by Premier Mikhail Mishustin.
‘Developing large0scale projects is often linked with high costs and long payback periods,’ the government press office quotes Mishustin as saying in a meeting with vice premiers on August 8.
State guarantees can help reduce the creditors’ risks and make capital investment into specialized projects in such priority sectors as transport, development, housing, utility, energy more attractive, he added.
The state guarantee will cover up to 50% of the obligations to repay the loan principal taken out for a period of 3 to 30 years. The minimal sum of the state guarantee will make 2 bn rubles ($33 mn).
The obligatory condition is for the company to have the share of its own investment into the project no less than 20%.