Russian electronics manufacturers can receive additional assistance. According to Commersant, the Ministry of Finance, together with the largest banks, intends to implement a concessional loan scheme for vendors in need of working capital to implement projects. 4 billion roubles are expected to be the minimum amount of such loans and only 5% of the annual rate; this is particularly important in circumstances where market participants often have to agree on prepayment of supplies.
According to Commersant, a meeting with Sberbank, Alpha Bank, VTB and other credit institutions took place on 1 August at the Mincitra site, during which the Ministry proposed a new programme, and the Government intends to compensate banks for the difference in the market interest rate from the reserve fund. According to sources, the initiative is still "in the design phase" and is aimed at supporting domestic companies that lack working capital due to the reluctance of foreign suppliers to work without payment.
The new measure could be a complement to the initiatives being developed by the Ministry of Science and the Ministry of Development since last year. For example, the "slip project" mechanism provided a budget subsidy of up to 50% of the cost of the project when large customers purchased Russian digital equipment. This should have created a "guaranteed demand" for domestic production equipment. However, according to the "Commersant" with reference to its sources, despite business interest, the "slip project" has never been launched, and the status of the initiative is not known today.
According to the publication, market participants are confident that the current terms of credit do not allow new production sites to be launched, but that in order to continue working without credit, it is necessary to negotiate partial advance payments with consumers, and in order to delay payments with suppliers, it is difficult to scale up the business in the circumstances. Even though the Industrial Development Fund can borrow up to 3 billion roubles annually, large-scale lending requires either collateral for most of the business ' s assets or bank guarantees for five years, the banks themselves are reluctant to do so because of the associated risks.