Since the launch of the procedure for subsidized lending to agribusiness stipulating the maximum interest rate of 5% p.a. Russian Agricultural Bank (Omsk branch is the member of Omsky Biocluster) has provided financing to agricultural producers totalling more than RUB 25 billion. Lending has been allocated to agribusiness enterprises operating in 44 regions of the Russian Federation. RusAg became the first authorized Russian bank to embark on the new procedure and as of today holds the leading position by the amount loans disbursed under the new rules.
“Over less than 2 months after signing the Agreement with the Ministry of Agriculture RusAg has completed all the approvals, set up a streamlined and uninterrupted subsidized lending process and disbursed substantial part of loans to hundreds of agricultural producers. I believe that the support provided by RusAg will help to properly and timely carry out the sowing campaign and grow high crop yield in 2017,” said Alexander Tkachev, Minister of Agriculture of the Russian Federation.
Dmitry Patrushev, Chairman of the Board and CEO of RusAg, earlier said the Bank continues to accept applications from agribusiness producers, draw up registers of potential borrowers and ensure that the projects are approved with the Agricultural Ministry. Special focus is placed on servicing small agribusiness enterprises. As at 6 March 2017, the Bank has received about 1,000 applications from small business clients totalling more than RUB 10 billion.
The subsidized lending procedure launched in 2017 helps to significantly streamline the process of financing agribusiness borrowers. Now, enterprises do not need to immobilize working capital and go through a lengthy process to get a subsidy. This measure strongly enhances the efficiency of the state support of the industry.
General information: Russian Agricultural Bank JSC is the basis of the national credit financial system, specializing in banking services for agricultural sector in Russia. The bank was established in 2000 and is a key creditor of the country’s agribusiness. It ranks among the top major banks of the country in terms of assets and is one of the leaders of the Russian bank reliability rating. 100% of the voting shares of the Bank belong to the Russian Federation.
