The Industrial Development Fund reduces a base rate from 5% to 3% per annum
The IDF Supervisory Board decided to reduce the base rate for IDF programs to 3% from January 1, 2021. According to Denis Manturov, Minister of Industry and Trade of the Russian Federation and the Chairman of the IDF Supervisory Board a number of financing programs already have a rate of 1% which allows to credit industrial enterprises on the most favorable terms.
At the same time, all options that allow to reduce the base rate remain in effect. For example, the rate can be reduced by 2 percentage points and reach 1% per annum under the "Development Projects" program, if the borrower provides a bank guarantee as collateral for a new project or if mainly Russian equipment is purchased as part of the project.
The base rate will be 3% per annum under the "Digitalization of industry" program, while the rate will still be reduced to 1%, if the borrower uses Russian software or engages a domestic system integrator.
According to the programs "Machine tool", "Components" and "Conversion" the rate will remain at 1% per annum in the first 3 years, while after the first three years of the loan the rate will be 3% instead of 5% per annum for projects approved by the IDF Expert Council after January 1, 2021.
The rate will also remain at 1% per annum for manufacturing industries under the "Leasing Projects" program. However, the rate will also be reduced from 5% to 3%, for other leasing projects, within the framework of which domestic equipment is purchased and approved by the IDF Expert Council after January 1, 2021.
Since 2015, the Industrial Development Fund has financed more than 750 projects for a total amount of loans of more than 171 billion rubles. The total budget of the projects exceeded 420 billion rubles. Borrowers launched 260 new production facilities or increased output thanks to IDF loans.
The Industrial Development Fund was created on the initiative of the Ministry of Industry and Trade of the Russian Federation to modernize Russian industry, organize new production facilities and ensure import substitution.
IDF programs allow Russian enterprises to get access to preferential loan financing, which is necessary for the production launching of unique domestic products, as well as analogues of advanced international developments.
IDF provides loans at 1% and 3% per annum for up to 7 years in the amount of 5 to 2 billion rubles stimulating the direct investment inflow in the real sector of the economy.
The Fund flagship program "Development Projects" is aimed at the import substitution development and the competitive products production. The "Machine tool building" program is aimed at the manufacture of production facilities, equipment and machine tools in Russia. "Conversion" program encourages the production of high-tech products of civil and/or dual-use by defense enterprises. The program "Components" will increase the localization level of final Russian products manufacture. "Drug labeling" will enable pharmaceutical manufacturers to install equipment for products traceability. "Leasing" - to finance part of the advance payment for the purchase of equipment,
"Digitalization of industry" will help to implement software and technological solutions to optimize production processes. The "Labor productivity" program makes it possible to implement measures to increase the productivity of employees at enterprises. The "Priority projects" program allows to finance large projects for the critical products manufacture included in import substitution plans.
IDF agreements with regional industrial development funds make it possible to receive loans under joint programs.
The IDF has a Consulting Center which helps enterprises to choose Fund's program, ways to participate in state support competitions (for the conclusion of Special Investment contracts and for compensation of the interest rate on investment loans).
For more information contact the External Communications Department of the Industrial Development Fund: +7-495-789-4730, ext. 146, press@frprf.ru, https://frprf.ru/
The original article is on the website Minpromtorg RF