Agriculture

Russian Ministry of Agriculture elaborates new interest rate for farming

Ministry of Agriculture offers Ministry of finance to change method of subsidy calculation for credits of locally grown producers, as derivative from key rate of Russian Central Bank (current – 17%), instead of bank rate (8.25%).

Advances portfolio (or issued but not repaid yet total credits) of farm credit in Russia counts about 2 trillion RUR. The state compemsate part of interst rate from federal budget: up to 80% of bank rate for poultry farming and pigstry, up to 100% – for cattle.

Early in 2014 average cost of long duration farm credita was 14-15%. Big producers got effective rate (or cost of credit per year including all expenses) for investment credit at 2-4.5% until now.

Financing of state programme of Russian agricultural development till 2020 will count 2.126 trillion RUR. The govenrment intends to invest 185 trillion RUR in the industry in 2015.

Following publications were used for the article: Rossiyskaya gazeta , Rossiyskaya gazeta , Agromedia.ru