Whether new instruments of attraction of liquidity to the industry will function?

Industry Development Fund (IDF) and the Ministry of Industry and Trade are preparing a new instrument of the support of domestic businesses through leasing schemes, including with the help of the Central Bank (CB). The industrial companies engaged in the implementation of the policy of import substitution may count on support.

The fund with the volume of 20 bln RUB was established in 2014 to support the import-substituting industries, and we can already talk about some of the results of its activity. In particular, enterprises received loans of 12.28 bln RUB under the attractive 5% per annum (taking into account the high cost of borrowings on the open banking market and limitation of western instruments of attraction of liquidity due to sanctions).

However, the question of leasing support is still open: there are no funds for initial payment to a lessor in the import-substituting industry, and it is 10% -50% of the cost of equipment. IDF plans to allocate loans of 5-250 mln RUB at the rate of 5% per annum for up to 5 years, it can be financed from 10% to 50% of initial payment. The idea to use the preferential leasing has been already approved by the supervisory board of the fund. 

The program should be started before the end of the current year. The priority will be given to the purchase of Russian-made high-tech equipment for the engineering industries (oil and gas, tool-making, electric-power industries etc).

The second direction is the support of leasing companies with the help of the CB. The fund offers the Central Bank to grant funds to leasing companies through banks. It is discussed with the Central Bank the allocation of up to 10 bln RUB for it and provision of money to banks at 9.5% per annum.

If it will be able to put into action the suggested instruments, it will let reduce Russia's dependence on foreign supplies of machine tools, machinery and other equipment, which import occupies a significant share in its goods structure.