The Ministry of Finance has prepared amendments on the control of use of means of Fund for investment projects

Moscow. November 23. The Finance Ministry has prepared amendments to a number of rules for the use of funds of the national welfare Fund (NWF) for sustainable infrastructure projects that will allow you to control “end-to-end financing” of projects and to withdraw the Fund, if the timing of their use are violated.

Relevant documents are available on the website for posting information about the preparation of the Federal bodies of Executive power projects of normative legal acts and results of their public discussion.

So, changes in rules of assessment of expediency of financing of investment projects at the expense of the national welfare Fund or pension savings provides that the passport of the investment project if the financing from the funds of the NWF should be given the period of sampling and the deadline to send funds directly to the financing of the project.

The budget code of the Russian Federation it is established that the financing of projects through the national wealth Fund can be carried out directly by the Ministry of Finance and credit institutions on a “pass-through funding”. Banks purchased securities are not taken into account in the composition of financial assets of the Fund, so these funds do not require the agreement of the initiator of the project, with Executive authority for monitoring the implementation of the project and targeted use of funds of the NWF.

Amendments to requirements for financial assets, which can accommodate NWF, it is proposed to require from a credit institution at the conclusion of the contract on the placement of the Fund on a subordinated Deposit or the contract of purchase and sale of subordinated bonds to take the obligation to place these funds into securities only if the Issuer provided a copy of the agreement between him and the authorized body of Executive power on the provision of reports on project progress and on the use of funds of the NWF.

Banks that drew funds can buy securities of Russian issuers related to the implementation of projects, only when the initiators of these projects confirm the use of implementation funds previously received through issuance of securities, which acquired the Finance Ministry at the expense of means of NWF.

In addition, the amendment sets out the obligation of a credit institution to enter into with the Issuer an agreement to buy back the securities at their purchase price and pay accrued interest in the amount proportional to the amount of not aimed at financing the project of NWF, in the event of a breach by the Issuer established by the passport project deadlines directions of raised funds of the NWF to Finance the project.

Amendments in rules of placement of funds of the NWF in securities of Russian issuers associated with the implementation of infrastructure projects provides that the Issuer of these securities must submit to the Ministry of Finance a written confirmation of its use on the project earlier attracted funds of the NWF funds or banks that raised funds through NWF subordinated deposits or the subordinated bonds in full.

Also, the Issuer and the Finance Ministry must sign an agreement, whereby the Issuer in the event of violations of the passport project deadlines for allocation of Fund for project financing must redeem their securities at the price at which it was purchased by the Ministry of Finance, to pay the accrued coupon yield, is proportional to the amount directed to Finance the project Fund.

The Ministry of Finance to purchase securities of the Issuer only after the signing of this agreement.