Lending to Kirov enterprises by the Industrial Development Fund

The Industrial Development Fund under the Russian Ministry of Industry and Trade has increased the maximum loan size issued under the state program "Development Projects".

Previously, the size of a loan issued at 5% per annum with a repayment period of up to 7 years inclusive ranged from 50 million rubles to 300 million rubles. Now the upper loan limit has been set at 500 million rubles. The share of the loan that recipients can use to purchase new equipment has also been revised. Before the changes, 80% of the loan amount could be spent on updating production capacities; now it is 100%.

As explained by the Ministry of Industry and Energy of the Kirov Region, these measures will increase the accessibility of credit resources for large and medium-sized businesses.

It is worth recalling that the Director of the Industrial Development Fund, Alexey Komissarov, visited the Kirov Region at the invitation of Igor Vasiliev on January 18 of this year. During the meeting, the head of the region emphasized that interaction with the Fund and other federal institutions is an important stage in the process of forming a favorable investment climate in the Kirov Region.

"Enterprises in the region must have all up-to-date information about existing state support instruments and be able to use them effectively in their work. We are ready to provide informational support on organizing interaction with the Fund to all interested enterprises in the region," noted acting deputy chairman Maxim Kochetkov.

Incidentally, over the past two years, 14 applications from 11 enterprises of the Kirov Region for a total amount of over 1.5 billion rubles have been submitted to the Industrial Development Fund. The Russian Ministry of Industry and Trade, together with the Fund, provided them with financial support amounting to over 1 billion rubles. A subsidy to compensate for part of the costs of paying interest on loans was received by 3 enterprises in the region for a total amount of 49.2 million rubles. Another 150 million rubles were received by one of the enterprises to compensate for part of the costs of conducting research and development work.

It is worth recalling that in December 2016, the Industrial Development Fund approved an application from the Kirov branch of JSC "AVVA RUS" for 50 million rubles. The loan will allow the purchase of production equipment and the launch of production of an antibacterial agent in the form of dispersible tablets. In its first year of operation, the enterprise plans to achieve 100% import substitution for this drug, which is currently produced by foreign companies. The project plans to create 38 jobs and generate tax revenues of over 200 million rubles to the consolidated budget of the Russian Federation.