FINANCIAL SUPPORT FOR SMALL BUSINESS

Published: 3 December 2004 y., Friday
In 2005, the program of support for small business will be put into effect, Andrei Sharov of the Russian Ministry of Economic Development and Trade said Thursday. "The project is aimed to develop micro-financing institutes," Mr. Sharov said at a conference, "Microfinancing in Russia: Today and Tomorrow." "Our task is to create a link between an enterprise and a micro-financing organization," he added. In his words, the matter concerns state subsidies covering interest rates of the bank loans for small businesses. Mr. Sharov recalled that next year's budget allocated 1.5 billion rubles ($1 equaling 28.02 rubles) for the support of small business. State subsidies, he continued, may account for 10-15% of this sum. The program in hand will have effect if co-financing is provided by constituent federation members and private companies. "We will attract two rubles from constituent federation members and private investors per each federal ruble," said Mr. Sharov. This program will facilitate access of private entrepreneurs to bank loans and make it possible to extend the micro-financing market by at least 20%, Mr. Sharov noted. He also said that micro-financing organizations were credit cooperatives, or several entrepreneurs who unite and take a bank loan under joint surety," said Mr. Sharov.
Šaltinis: RIA Novosti
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