IDF will start issuing loans up to 2 billion rubles at 1% per annum for up to 7 years for projects of all manufacturing industry branches
The Supervisory Board of the Industrial Development Fund (IDF) decided to expand the "Priority projects" program to include almost all classes of the OKVED section C "Manufacturing industry". The exception were manufacturers of tobacco products, coke, petroleum products, nuclear fuel, food industry enterprises, as well as printing business.
Denis Manturov, Minister of Industry and Trade of the Russian Federation and the Chairman of the IDF Supervisory Board said that expanding the list of industries for the "Priority projects" program will allow a wide range of industrial enterprises receive preferential loans from 500 million to 2 billion rubles for up to 7 years at 1% or 3% per annum, depending on the collateral. He added that conditions were almost equal. The only difference is one additional requirement: the project's products must be included in the industry's import substitution plans.
Previously, loans under the "Priority projects" program could only be received by companies that manufacture products for the production of liquefied natural gas, high-capacity turbines and drilling equipment manufacturers. In July 2020, in order to fight the COVID-19, its effect was extended to manufacturers of nonwovens, rubber gloves and equipment for the production of personal protective equipment.
The Minister stressed that the implementation of large-scale import-substituting industrial projects often requires more funding than the basic IDF programs provide. For example, the maximum loan amount under the most popular program is 500 million rubles, which is not always enough for the large import substitution projects implementation. Now, enterprises have an additional opportunity to attract preferential loans in the amount of up to 2 billion rubles.
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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 of 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