Authorities in Orenburg region are offered to reduce interest rates on loans to agricultural producers with more than 20% to 5-6 %, said the representative of the press service of the regional government.
ORENBURG, 8 Dec. Authorities in Orenburg region are offered to reduce interest rates on loans to agricultural producers with more than 20% to 5-6 %, said the representative of the press service of the regional government.
“The proposal was made by the Minister of agriculture, food and processing industry of Orenburg oblast Mikhail Maslov, speaking at the Federation Council of the Russian Federation at the expanded session of the Federation Council Committee on agrarian and food policy and environmental management on the topic “problems of the debt burden on agribusiness companies and measures to improve the mechanisms of financial recovery”. The event was held in the framework of the Days of the Orenburg region in the upper house”, — said the Agency interlocutor.
As noted by Maslov, drought and the invasion of pests has led to the fact that in 2015 in the Orenburg region killed more than 596 thousand hectares of crops. Damage only on direct costs reached $ 1.7 billion. This led to the fact that farmers in the region are having problems with calculations on loans. Banks were 196 cases of prolonged credit in the amount of 6.3 billion rubles and the debt burden on agricultural companies has increased.
In this regard, the government proposes to reduce interest rates on loans to agricultural producers up to 5-6 % per annum and to transfer funds for reimbursement of expenses on payment of percent on loans directly to lending institutions, thereby reducing the financial burden of loan servicing.
“Short-term extension of credit doesn’t solve the problem of strengthening the financial sustainability of agricultural enterprises”, — said Maslov. In this regard, he proposed to increase the installments of principal in ten years and to subsidize the interest on extended loans.
