Ministry of Economic Development fears staff cuts in companies affected by COVID-19

MOSCOW, 8 Feb – RIA Novosti. The Ministry of Economic Development fears that some of the companies that have not yet recovered due to the COVID-19 pandemic may cut staff after writing off concessional loans, and are preparing additional support measures, said the Minister of Economic Development of the Russian Federation Maxim Reshetnikov at a meeting of the presidium of the United Russia faction.

Russian President Vladimir Putin proposed to launch special loans at 2% from June 1 to support employment in companies from industries affected by the coronavirus. The loan matures on April 1, 2021. If during the entire term of the credit program the enterprise maintains employment at the level of 90% and higher of its current staffing level, then after the expiration of the loan term, the loan itself and the interest on it will be completely written off, these costs will be borne by the state.

He recalled that due to the so-called “FOT 2.0” lending program, which involves writing off a loan while maintaining employment, 5.366 million jobs are protected.

“At the moment, under the protection of the FOT 2.0 program, this is a program for lending to small and medium-sized businesses with the subsequent write-off of loans, provided that the business retains jobs – under the protection of this program there are 5 million 366 thousand jobs. The program ends in March their action, at the moment 98% of companies are performing covenants, “Reshetnikov said.

According to him, 95% keep employment from 90% and above, about 5% – from 90% to 80%. “The implementation of these programs is significantly higher than our expectations. Accordingly, we are afraid here that in March some part of the companies may reduce employment, especially in those activities that have not fully recovered so far, such as catering, This is the service sector, this is the entertainment sector and the hotel sector. Accordingly, at the moment, on behalf of the President, we are preparing proposals for additional measures to support these sectors of the economy, and it seems to us that this is just extremely important for maintaining employment, “the minister added.

Author: wedocount

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