The rules of an easy-term loan for the systemically important enterprises, approved earlier by the Order of the Government of the Russian Federation No. 582, were corrected by the Order of the Government of the Russian Federation No. 712 from 20.05.2020.
According to the amendments, not only the systemically important enterprises, but also their subsidiaries belonging to the industries the most affected by a new coronavirus infection, can now receive the easy-term loans for financing of working capital. An extensive list of such sectors was approved by the Order of the Government of the Russian Federation No. 434 from 03.04.2020. In particular, these are:
- air transportation and airports;
- road transportation;
- cultural, leisure and entertainment companies;
- health and fitness and sport organizations;
- travel agencies and other tourism companies;
- hotels and catering companies;
- establishments providing additional education and non-state educational institution;
- exhibition and conference management services companies;
- household services to population (repairs, laundry, dry cleaning, hair and beauty salons);
- public health organizations;
- nonfood retailers;
- mass media and printing establishments.
The full list called «Business entities of affected industries. Moratorium on bankruptcy» is available in the «Lists we recommend» of the Information and Analytical system Globas.
According to the new rules, the easy-term loans are available for the borrowers whose revenue reduced by more than 30% compared to the same period last year.
Besides, the maximum period for loan agreement was extended from 12 to 36 months. The effective period of promotional rates can not exceed 12 months from the date of conclusion of the agreement and end no later than December 31, 2021. This rule applies to the loans provided after April 25, 2020.
The maximum loan amount, received by the systemically important enterprise, includes the loans granted by its subsidiaries under the same state program. This also refers to the loans provided after April 25, 2020.
The maximum loan amount and promotional rate have remained the same: 3 billion RUB and up to 5% per annum respectively.
The requirements for borrowers were significantly increased:
- for the first time, a loan agreement should be concluded under this state program;
- the borrower should not be in the process of reorganization, liquidation or bankruptcy, and its activities should not be suspended;
- the borrower must be under Russian jurisdiction, and the total share of offshore participation should not exceed 50%. This requirement applies to the loans provided after April 25, 2020;
- during the interest rate financing, the borrower is required to keep the number of staff at least 90% from the number of employees as of May 1, 2020;
- before effecting a loan agreement, the subsidiary must obtain the consent from the parent company.
After the loan was received, the following restrictions are imposed on borrowers:
- loan funds should not be used to refinance previously received loans. This also refers to the loans provided after April 25, 2020;
- during the interest rate financing, the payment of dividends is prohibited, except cases provided by the separate decisions of the Government of the Russian Federation.
Information agency Credinform has prepared a review of activity trends of the largest Russian companies of the service sector during the financial crisis of 2008-2009.
The largest service sector companies (washing and dry cleaning of fabric and fur products, hair and beauty salons, funeral services, activities of bath houses and saunas, wellness centers and fitness clubs, social services, pet care, etc.) (ТОP-1000) in terms of annual revenue were selected according to the data from the Statistical Register for the latest available periods (2006 - 2011). The analysis was based on data of the Information and Analytical system Globas.
Number of active companies
Within 2006 - 2011 the number of active companies was growing, however in time of crisis and in the beginning of recovery, the growth rate was decreasing.
The largest company in terms of net assets was JSC LUZHNIKI OLYMPIC COMPLEX, INN 7704077210, Moscow, health and fitness activity. In 2011 net assets of the company amounted to almost 8 billion RUB. In 2018 the indicator amounted to almost 44 billion RUB.
The smallest size of net assets in TOP-1000 had LLC AKVASTAR, INN 1101032480, Komi Republic, washing and dry cleaning of fabric and fur products. The lack of property of the company in 2011 was expressed in negative terms -28 million RUB and in 2018 -2 million RUB.
Within 2006-2011, the average values of TOP-1000 net assets showed the growing tendency, however the growth rate was decreasing (Picture 2).
Within 2006 - 2011, the share of ТОP-1000 enterprises with lack of property is decreasing (Picture 3).
The largest company by sales revenue was also JSC LUZHNIKI OLYMPIC COMPLEX, INN 7704077210, Moscow, health and fitness activity. In 2011 the indicator amounted to more than 2 billion RUB and in 2018 just over 1 billion RUB. In general, the growing trend in sales revenue with decreasing growth rate was observed (Picture 4).
Profit and loss
The largest company in terms of net profit was LLC LINDSTROM, INN 7816659619, St. Petersburg, washing and dry cleaning of fabric and fur products. In 2011 the company’s profit amounted to 100 million RUB and in 2018 – 113 million RUB.
Within 2006 – 2011, the average profit values of TOP-1000 showed the decreasing tendency (Picture 5).
In 2006 – 2011 the average net profit values of ТОP-1000 showed the growing tendency, along with this the average net loss was increasing (Picture 6).
Main financial ratios
In 2006 – 2011 the average values of the current liquidity ratio were higher than the recommended values - from 1,0 to 2,0, with growing trend (Picture 7).
Within 2006 - 2011 the growing trend of the average values of ROI ratio with downward trend in the crisis 2009 was observed (Picture 8).
n 2006 – 2011 this business activity ratio demonstrated the growing trend (Picture 9).
64% of ТОP-1000 companies are registered in the Unified register of small and medium-sized enterprises of the Russian Federal Tax Service. Herein, in 2011 their share in TOP-1000 total revenue was almost 36% (Picture 10).
Main regions of activity
ТОP-1000 companies are unequally located across the country and registered in 77 regions of Russia. Almost 48% of the largest enterprises in terms of revenue are located in Moscow, Moscow region and St. Petersburg (Picture 11).
Financial position score
An assessment of the financial position of TOP-1000 companies shows that in 2020 the largest part have the average financial position (Picture 12).
Solvency index Globas
In 2020 the most of TOP-1000 companies got superior/high or strong/medium Solvency index Globas, this fact shows the ability of the companies to meet their obligations in time and fully (Picture 13).
A complex assessment of activity of the largest Russian companies of the service sector, taking into account the main indexes, financial ratios and indicators, demonstrates the presence of positive trends within 2006-2011 (Table 1).
|Trends and assessment factors||Relative share, %||Possible forecast|
|Dynamics of active companies||10|
|Growth rate of active companies||10||During the acute phase of crisis the number of active companies may decrease.|
|Dynamics of average net assets value||10|
|Growth/drawdown rate of average net assets value||-10||During the crisis recovery the growth rate of average net assets may decrease|
|Increase / decrease in the share of enterprises with negative net assets||10||During the acute phase of crisis number of enterprises with negative net assets may increase|
|Dynamics of average revenue||10|
|Growth/drawdown rate of average revenue||-10||In time of crisis the growth rate of revenue may decrease|
|Dynamics of average profit||-10||In time of crisis and its recovery the profit may decrease|
|Growth/drawdown rate of average net profit (loss)||-10|
|Increase / decrease in average net profit of companies||10|
|Increase / decrease in average net loss of companies||-10||In time of crisis and its recovery the net loss may increase|
|Increase / decrease in average values of current liquidity ratio||5|
|Increase / decrease in average values of ROI ratio||10||During the acute phase of crisis the ROI ratio may decrease|
|Increase / decrease in average values of assets turnover ratio, times||10|
|Share of small and medium-sized businesses by revenue more than 20%||10|
|Financial position (the largest share)||5|
|Solvency index Globas (the largest share)||10|
|Average value of factors||3,1|
favorable trend (factor), unfavorable trend (factor).