Russian coronavirus financial support sluggish

RUSSIA / FSU POLITICS - In Brief 14 Apr 2020 by Alex Teddy
Russian banks are rejecting many appeals for financial support from businesses. Government programs allow assistance to such businesses. On April 10 the Governor of the Russian Central Bank (CBR) said that issuance of loans under these scheme was slow. She asked banks to hurry up. 900 companies have applied for a total of USD 81 million in interest free loans to pay salaries. The government will subsidize the cost of these loans. By April 10 only 1.2% of this had been approved. Banks rejected 85% of applications for emergency loans. The government mandated banks to accept a 6 month moratorium on loan repayment by those who have their income fall by 30% or more. On April 13 the head of the Audit Chamber predicted unemployment will triple and reach 8 million unless the government takes drastic action. The government set aside USD 19 billion for anti-crisis support. That is 1.2% of GDP. Deutsche Bank produced a report saying this is totally insufficient. The oil price drop and the state's circumspection explain the very limited size of the support fund.

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