An additional 1 billion rubles will be allocated for the industrial mortgage program

The Russian government will allocate an additional 1 billion rubles for the industrial mortgage program, informed Prime Minister Mikhail Mishustin.

“The program was launched last year at the initiative of the president and aroused great interest from business. Now the government has additionally allocated more than 1 billion rubles for its financing … and thus the total amount of subsidies for the current year has exceeded 1.3 billion rubles,” he said.

As a result, enterprises will be able to receive preferential loans for the purchase of production facilities in the amount of more than 45 billion rubles, the prime minister added. According to him, heads of industrial companies often asked about this financial instrument and the government intends to further improve this program.

Mishustin announced the launch of an industrial mortgage in September 2022. Now enterprises can get soft loans at a rate of 5% to buy real estate to start production. It is specified that for technology companies the rate will be 3% per annum. The maximum loan amount is 500 million rubles, the loan term is up to seven years.

From April 2023 Ministry of Industry and Trade spread industrial mortgage mechanism for construction, reconstruction and modernization of enterprises. As Leonid Danilov, deputy director of the department of regional industrial policy of the department, noted, in the new version of the promipoteka mechanism, the condition for launching production in new areas after modernization will remain for three years. According to him, the plants have already received about 40 loans, “several dozen more transactions are under approval.”