How to Take Part in the Program?
· The Bank financing the investor must be certified by the Ministry for Development of the Russian Far East
· The certified (authorized) bank must submit a subsidy application to VEB.DV
· VEB.DV will deliver a report on the compliance of the application with the subsidy regulations to the bank and to the Ministry for Development of the Russian Far East
· The Ministry for Development of the Russian Far East will approve the application and sign a subsidy agreement with the bank
· The Bank will issue the loan and receive a subsidy to make up for a portion of the loan interest on a monthly basis
Does this imply that it is the bank who has to do the entire job instead of the borrower?
The objective of the regulations is to minimize the administrative burden for investors. The bank serves as the link between the investor and the Ministry.
VEB.DV serves as the Ministry’s agent.
What kind of investors are eligible to a subsidized loan?
Residents of an Advanced Special Economic Zone or Free Port of Vladivostok.
What kind of loans are eligible to subsidies?
· Loan agreements made on January 1, 2020 at the earliest.
· The total cost of the investment project must be between RUB 30 mln and RUB 1,500 mln.
· The total cost of the investment projects implemented by a single investor or by a group of related investors must not exceed RUB 3 bln.
What requirements must the bank meet to become authorized?
Virtually any Russian bank is eligible. See the details in Clause 11 of the Regulations
Is my bank authorized?
The list of authorized banks will be compiled and published in June 2020.
What is the amount of the subsidy?
· 6% for loans with an interest rate within a range from 6.67% to 15% (net of the subsidy).
· In case of other loans, see Clauses 19-20 of the Regulations.