VEB.RF Guarantees RUB100bn in Surety Bonds for 3% Loans

20 april 2021 года
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State Development Corporation VEB.RF has issued surety bonds to commercial banks for more than 100 billion roubles under a new programme to support businesses. VEB.RF’s total limit under the programme is 131 billion roubles.

What is the purpose?

The Russian Government launched a new low-interest lending programme to provide businesses with 3% loans, with VEB.RF issuing surety bonds to commercial banks.

“VEB.RF has already issued surety bonds for low-interest loans to as many as 17 banks, including regional credit institutions. Our surety bonds will secure the performance of the borrowers’ debt obligations and guarantee that up to 75% will be repaid in principal and interest,” said Daniil Algulyan, Deputy Chairman, VEB.RF.

VEB.RF has already been involved with similar programmes. Since the beginning of the pandemic, VEB.RF has issued surety bonds totalling 500 billion roubles to 40 banks under the first two rescue schemes for ailing businesses.

What are the results?

The start date for loan applications under the new programme was 9 March 2021. The banks now have over 9,000 loan agreements totalling 27.3 billion roubles. Loans are accessible to micro, small, and large businesses working in tourism, sport, entertainment, leisure and hospitality. The loan amount depends on the number of employees. The ceiling is 500 million roubles for 12 months.

How long will the programme last?

Applications can be submitted from 9 March to 1 July.


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