On 20 June 2012, the Ministry of Finance of the Russian Federation (the “Ministry”) published on its official website a draft law regarding the granting of State guarantees for credit and bond loans of Russian companies (the “Draft Law”).
Specifically, the Draft Law envisages that guarantees will be granted:
- as credit of Russian banks and Vnesheconombank;
- for five years, and only for the principal amount that becomes due after 1 January 2015;
- for securing (i) 70% of the relative obligations of enterprises in the defence industry; or (ii) 50% of the obligations of other organisations;
- without charging the debtor a fee; and
- only if the debtor complies with the set conditions and submits the necessary documents under the Draft Law.
The Ministry will grant a guarantee based on the decision of the Government of the Russian Federation after a governmental commission has selected candidates to provide support under the described procedure. The Ministry has drawn up the Draft Law as part of its measures to increase the stability and economic development of Russian companies and banks in the event of a further downturn in the financial markets.
[The text of the draft decree of the Government of the Russian Federation “On the Procedure in 2012 for Granting State Guarantees of the Russian Federation for Credit or Bond Loans Attracted by Legal Entities for the Purposes Established by the Government of the Russian Federation as Part of Increasing the Stability of Economic Growth in the Event of a Downturn in the Financial Markets” is available in Russian on the website of the Ministry of Finance of the Russian Federation here: http://www1.minfin.ru/ru/legislation/projorders/]