The government of the Russian Federation will issue an order in the days to come to subsidize interest rates on the extended credits granted to drought-affected agricultural producers, first vice PM Victor Zubkov said on Thursday at a meeting held by Rosselkhozbanks supervisory board, Prime-TASS reported quoting a statement of the governments press service.
Attendees of the supervisory boards meeting reviewed the possibility of Rosselkhozbank extending credits issued to agricultural producers, which were affected by the drought. Meanwhile, Zubkov emphasized the need of analyzing each related application thoroughly and examining financial possibilities of businesses.
“Credit extension should be a mechanism for financial rehabilitation, restoration of borrowers creditworthiness, but not pave the way for pending bankruptcies," the first vice prime minister stressed.
Also, for the purpose of expanding Rosselkhozbanks credit portfolio supervisory board members approved the lenders deeper involvement in lending other sectors of the economy, first and foremost, fisheries, timber businesses and other sectors adjacent to the agribusiness.