Putin approved the launch of a concessional lending program for businesses

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Russian Prime Minister Mikhail Mishustin said that Russian President Vladimir Putin has approved new support measures for business – a one-year extension of the concessional lending program at 3%. He stated this on February 24 at a meeting with senators.

The head of government recalled that the current program of business support “FOT 2.0” is ending, but there are sectors of the economy that have not yet recovered to the pre-crisis level. As an example, he named the spheres of public catering, culture, entertainment, sports, organization of events, tourism and a number of others. Mishustin noted that they still need government assistance.

“I would like to inform you about the most important decision – about new measures to support businesses from the most affected industries, which previously used the FOT 2.0 program,” said the Prime Minister.

He said that the Russian president had approved the decision to launch a new annual FOT 3.0 program.

“The conditions will be slightly changed in it, now the rate of preferential loans will not be 2, but 3%, this is a slight increase, given that the economy is gradually recovering,” added Mishustin.

He stressed that companies will get opportunities for growth and in the first half of the year the business under the new program will not pay the main debt and interest on the loan.

“In the second half of the year it will be possible to do it in equal monthly installments,” the Prime Minister said.

According to him, micro and small enterprises from industries that have not yet returned to the pre-crisis level will now be able to use the new program. Potentially, the help will be able to benefit from about 75 thousand entrepreneurs, and whose companies employ about 1.5 million people.

Earlier, on January 25, Izvestia reported that the anti-crisis program for issuing concessional loans to maintain the number of personnel (similar to the payroll 2.0 that was in force until November) may be resumed. This option was discussed in the government.

According to payroll 2.0, loans were allocated to small and medium-sized businesses from the affected industries, and the amount of debt should be written off, provided that the state is retained. The head of the Ministry of Economic Development and Trade Maxim Reshetnikov said that about 226 thousand Russian companies had concluded loan agreements and more than 400 billion rubles were issued under them. He noted that the program supports about 5.5 million jobs.