VTB announces expansion of concessional revolving loans

VTB will participate in a new program of the SME Corporation and the Bank of Russia on concessional lending to small and medium-sized businesses. Entrepreneurs will be able to attract financing for replenishment of working capital at a rate not higher than the "key rate plus 3%".

The bank noted that access to financing for many companies is a key condition for maintaining business sustainability. "We expect that by the end of the year we will be able to provide businesses with about 25 billion rubles under the new SME Corporation program. This will allow enterprises to implement new contracts and support business activity in the current economic conditions," said Ivan Razinsky, Head of the Regional Business Lending Department and Senior Vice President of VTB.

The new concessional lending tool is being launched by the SME Corporation in coordination with the Ministry of Economic Development of Russia and the Bank of Russia based on the mechanism of the Program to stimulate lending to SMEs with a total limit of 150 billion rubles. The program applies to new loan deals concluded after the approval of its terms.

Companies from priority industries, small technology enterprises, participants in regional productivity improvement programs, as well as borrowers from regions with an average response rate, regardless of the industry, will be able to receive preferential financing for up to one year. The amount of preferential revolving financing for one borrower under the new direction is up to 500 million rubles, while the total volume of transactions per borrower under all areas of the loan incentive program cannot exceed 2 billion rubles.