Boris Titov warned of mass bankruptcy of business with preferential loans

23 сентября 2020, 09:04
The Commissioner for the Rights of Entrepreneurs Boris Titov sent a letter to Prime Minister Mikhail Mishustin, in which he indicated the impending massive bankruptcy among the recipients of soft loans at 2%.

To maintain a preferential loan rate, companies must fulfill the main condition - to leave the number of employees at least 80% of the number as of June 1, 2020.

The Business Ombudsman points out that firms that were among the first to receive a preferential loan will not be able to fulfill the terms of the contract, because the number of their employees at the conclusion of the contract was determined not for June 1, but for May 1. Employee data were taken from the Russian Pension Fund database updated in the second half of the month. In May, entrepreneurs could cut their staff by 20% compared to April, and therefore they will have to repay the loan at the full rate. The base period will end on December 1.

- As a result, at the end of the base period, such entrepreneurs will be transferred to the repayment period and in three equal payments - December 28, 2020, January 28 and March 1, 2021 - they will be required to repay the loan, but not at a preferential rate, but at a standard rate determined by by the banks themselves - about 15% per annum, - TASS quoted Titov's letter.

According to the Commissioner for the Rights of Entrepreneurs, it is necessary to update the data on the number of employees as of June 1, and for this it is necessary to clarify or amend the government decree on the provision of soft loans at 2%.

Let us recall that in early September, Titov appealed to the Russian authorities with a request to extend the anti-crisis measures to support business. These include, in particular, tax deferral for small and medium-sized enterprises and credit holidays and a moratorium on bankruptcy.

67% of Russian companies record a drop in demand for goods and services, Titov specified and warned of the risk of a surge in bankruptcies and a further contraction of economic activity.

He previously requested an extension of the direct subsidy program for SMEs until March 2021.

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