Reshetnikov Calls for Reduction in State Support for Business Lending

© Правительство РФ

Budget constraints will prevent the government from supporting business lending at the same level as during the COVID-19 pandemic, according to Russian Minister of Economic Development Maxim Reshetnikov. Instead, there should be a shift from debt support to capital support, he said at the "My Business" forum, an infrastructure support event for entrepreneurs.

"We are continuing to implement all state support measures. However, the current situation, including the budgetary situation, does not allow us to subsidize lending programs or distribute grants at the same scale as during COVID-19. The situation is much more complicated," Reshetnikov emphasized.

He noted that the government will continue to honor its commitments regarding loan servicing. However, new loans will be issued in much smaller amounts.

"Our focus is moving away from debt support for businesses, meaning we will reduce interest rate subsidies, and instead provide capital support in various forms," he clarified.

Reshetnikov also mentioned plans to expand programs aimed at helping businesses go public through IPOs. He believes that some experience has already been gained in this area and it is time to "replicate this experience."