The Ministry of Industry and Trade is preparing to triple the industrial mortgage ceiling

The Ministry of Industry and Trade proposes to once again adjust the terms of industrial mortgages: the size of preferential loans for projects of technological sovereignty and the production of priority products may increase from 500 million to 1.5 billion rubles, and the period of preferential lending – from seven to ten years. At the same time, the agency proposes to provide a more flexible approach to issuing subsidies to banks – if the amendments are adopted, the volume of subsidies can be increased according to market demand. In 2024, 1.3 billion rubles are provided for subsidizing interest rates on promi-mortgage, with an additional 1 billion rubles reserved for these purposes.

The Ministry of Industry and Trade published on regulation.gov.ru a draft government resolution designed to expand the use of the industrial mortgage mechanism – loans at 5% per annum for up to seven years (for technology companies – at 3%). Such preferential loans can be obtained not only for the purchase of production facilities, but also for their construction, modernization and reconstruction. Currently, the maximum loan size is 500 million rubles, the document proposes to increase the limits of preferential lending to 1.5 billion rubles, and its terms to ten years – but only for borrowers implementing technological sovereignty projects (development of critical technologies unavailable after February 2022 year) or production of the same products. The authors refer to the president’s order dated September 3, 2023 after a meeting with manufacturing enterprises – it indicated a specific amount of 1.5 billion rubles. and a period of up to ten years, the Ministry of Industry and Trade notes.

Previously, the Ministry of Industry and Trade already proposed increasing the credit limit to 2 billion rubles. for all enterprises at once – initiatives came from banks and companies. But given the limited volumes of financing for promi-mortgage in 2023, it was decided to leave the maximum loan volume unchanged in order to support a larger number of projects. Thus, in 2023, 1.3 billion rubles are provided for subsidizing interest rates on interim mortgages; this should ensure a loan portfolio volume of at least 45 billion rubles. The Ministry of Industry and Trade told Kommersant that as of October 18, 481 loan agreements were concluded for a total amount of 44.4 billion rubles, that is, the de facto limit has been selected.

The Ministry of Industry and Trade planned to return to the issue of increasing the limit after summing up the work of the mechanism at the end of the year. In the explanatory note, the department refers to banks’ data on potential borrowers. We know of at least 30 borrowers whose needs for funds for the construction, reconstruction or modernization of facilities exceed the current limits (RUB 500 million and seven years).

Amendments by the Ministry of Industry and Trade to the rules for subsidizing preferential rates were also required in connection with the change in the key rate. The department reserves the opportunity to change the requirements for banks based on the results of the provision of the subsidy. Thus, if the key rate is reduced, the demand for promi-mortgage also decreases and, accordingly, the number of preferential loans issued by banks may decrease; with an increase, the bank’s need for subsidies increases. The document also proposes a formula for calculating the amount of the subsidy taking into account changes in the Central Bank rate, as well as a flexible definition of the period for compensating lost income of credit institutions. This will allow subsidy payments to be made more often than once a quarter, as stated in the explanatory note. The authorities will be able to flexibly adjust the volume of subsidies to credit institutions – currently the limit can be revised once a year. “The proposal regarding the possibility of redistributing limits between banks is aimed at increasing the efficiency of using budget funds. The limits of “lagging” banks that have not issued the declared volume of loans will be able to be redistributed in favor of banks that have additional applications from borrowers,” the Ministry of Industry and Trade explains. In total, the draft budget for 2024 provides 1.3 billion rubles for subsidizing rates on industrial mortgages, and 294.6 million rubles each in 2025 and 2026. At the same time, an additional 1 billion rubles have been reserved for these purposes.

Diana Galieva