Twelve automakers in Russia are counting on privileged credits for working capital support of backbone enterprises during the COVID struggle.
Under the program, a company must have revenue of US$300 million (20 billion rubles) and employ more than 1000 people. A special bank product has been designed for such companies. The bank interest on this credit will be subsidized within the base interest rate of Russian Central Bank, and half of the credit will be warranted by the Ministry of Finances. Read The Article
PSR Analysis: Currently, some OEMs have suspended operations because there are no sales. AutoVAZ has not worked since April 29. It’s planning to resume work in late May. State support measures ensure that the Russian automotive industry will keep afloat even with the sharp fall in sales. So, no bankruptcy of automakers is expected. In the worst situation, the weakest enterprises will be nationalized. PSR
Maxim Sakov is a Market Consultant in Russia for Power Systems Research
