The Bank of Russia has proposed to give subsidies to companies to enter the capital market

icon
15:40; 16 September 2024 year
wikipedia

© wikipedia

The Central Bank proposes to introduce subsidies for equity financing. This is reported in the report of the regulator, which is devoted to the main directions of financial market development in 2025-2027.

It is proposed to make payments of a time-distributed subsidy to companies that enter the capital market. It is noted that such a measure can become an alternative to subsidies that are paid on loans.

This will allow companies and project initiators to decide on the financing structure solely based on the specifics of the economy of a particular project and the relative market value of these sources. This will not require an increase in government spending, given that a subsidy for equity financing will be provided instead of a subsidy for a loan," the document says.

This kind of support can be provided for companies that implement projects that are priority for economic development.

The Central Bank also notes that in the future, taking into account the priority for the development of the capital market and equity financing, an option may be considered in which more attractive parameters will be created to subsidize business financing using capital market instruments relative to incentives in the field of bank lending.