Preferential lending for specialised equipment

10 August 2018, Friday

In accordance with the Resolution of the Russian Federation Government No. 163 of February 17, 2018 “On Approving Rules for Granting Subsidies to Russian Credit Institutions for Reimbursement of Falling Income on Loans for the Purchase of Agricultural, Road Construction, and Utility Machinery, and Equipment for Food-Processing Industries”, Russian banks are granted with an opportunity to be reimbursed for the discount granted to the final consumer for interest payments on loans issued for the purchase of specialised equipment.

The Rules allow for subsidies for the acquisition of equipment when banks provide soft loans on the following conditions: the loan rate is about 5%; the loan period is up to 5 years; the borrower is any legal entity, an individual entrepreneur, or a physical person; the equipment was released into circulation on the territory of the Russian Federation not earlier than the year preceding the year of its sale, and had not previously been used; the equipment so acquired will be used as collateral for the loan.

In 2018, Federal Law No. 362-FZ of 5 December 2017 allocated RUB 2 billion for the implementation of this support measure.

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