In Russia, they conceived in a new way to support business lending

The Ministry of Economic Development of Russia decided to expand the number of regional warranty organizations (RGO), which are relying subsidies for co-financing the costs of guarantees, follows from the draft government decree (there is at the disposal “Renta.ru”).

We are talking about organizations that act as guarantors for small and medium-sized businesses in obtaining credit. The subsidy is aimed at reimbursement of the costs of the Bank’s requirements for the borrower if it does not fulfill obligations.

The ministry conceived to change the financing system based on the fact that the volume of support to business will become more.

According to the estimates of the Ministry of Economic Development, the RGO, which will be transferred to the new mechanism, make their own portfolio of one and a half or twice. As a result, the volume of loans that will attract business with the guarantee of such RGOs are evaluated in the department.

The subsidization mechanism itself has earned the requirements in 2021 for the RGA with a warranty capital from 700 million rubles, and now it is supposed to be extended to organizations with capital from 600 million rubles. As a result, 24 warranty organizations will rely as a result of the funds, now the mechanism concerns 17 RGO.

From the project also shows that the subsidies will be allocated taking into account the rank of guarantee organizations that will be assigned. “Corporation” SMEs “If RGS get a lower rank, the funding from the state budget it does not stand out. The scope of subsidies will also be dependent on the evaluation of indicators The effectiveness of regional warranty organizations, refers to the explanatory note to the project.

/Media reports.