Limit under state lending program at 2% for Sberbank increased by over RUB70 bln

Jun 16, 2020

June 16, 2020, Moscow Sberbank’s lending limit under the state lending program at 2% has been increased by over RUB70 bln. The limit that the country’s government had initially set for the bank stood at RUB95 bln and it was used entirely over the first week since the program launch.

Anatoly Popov, Deputy Chairman of the Executive Board, Sberbank,

“We are grateful to the government for the prompt decision to increase the limit. Sberbank has repeatedly stated that the new state lending program is extremely popular among our customers. I am sure that the new amount exceeding RUB70 bln will allow us to provide more companies with access to soft loans, first of all in the Russian regions, and will support businesses in the challenging times."

At a June 15 meeting with President of Russia Vladimir Putin on measures to support the economy and the social sector, Minister of Economic Development of Russia Maxim Reshetnikov stated that the total volume of the business lending program at 2% had been increased to RUB350 bln.

Maxim Reshetnikov, Minister of Economic Development of Russia,

“The overall lending volume has been increased by RUB100 bln to RUB350 bln, with 85% of the figure covered by a guarantee from VEB. This has significantly reduced the share of banks refusing to issue such loans. To date, banks have approved loans worth RUB155 bln and signed agreements for RUB76 bln. As many as 800,000 jobs have been supported.”

According to the program terms, if a company retains at least 90% of employees, 100% of the principal and interest will be written off starting from April 1, 2020. If a company saves at least 80% of jobs, 50% will be written off. Loans are available to commercial and socially-oriented non-commercial organizations.

The borrowed amount will depend on the number of employees multiplied by the minimum wage and the number of full months between the day when the loan is issued and December 1, 2020. Prolongation is possible if several terms are met, which are aimed at keeping the number of employees unchanged and proving a company is operating effectively. The maximum loan term is set on June 30, 2021, while for loans that’ll be written off it’s set on April 1, 2021.