Government to support the hardest hit sectors of the economy – PM


Vladimir Putin held a meeting with members of the government, presidential web page reports. During a video conference call, they discussed combating the coronavirus infection and socio-political agenda.

Speaking of the measures of support for business, Prime Minister Mikhail Mishustin pointed out, that “To protect businesses, a 6-month moratorium on initiating bankruptcy cases is envisaged. For the period of the moratorium, enforcement proceedings and the levying of fines and penalties are to be suspended, and the process for finalizing amicable agreements on debts will be simplified. Draft laws also envisage tax deferrals (except VAT) for small and medium size businesses and deferrals on insurance premiums for micro-businesses. The government has cut the insurance premiums for SMEs in half – from 30 to 15% starting April 1.”

According to Mishustin, “The government jointly with the Bank of Russia has developed measures to provide SMEs with a 6-month deferral on interest and principal debt on loans. It aims to support the hardest hit sectors of the economy, including public catering, consumer services, airlines, tourist agencies, sports, culture and cinemas. Specifically, we have postponed sending out tax notifications until May 1. All small companies working in these sectors will also be able to postpone loan payments.”

As he said, “The government has already introduced a grace period for small and medium-sized businesses for lease payments on federal property. Small and medium businesses in the hardest hit industries will, temporarily, not have to pay penalties or late fees for housing and utility services. In addition, it will be prohibited to cut off housing and utility services for those who cannot pay.”

Russian authorities “suggest a moratorium on a number of penalties and a temporary ban on blocking the accounts of small and medium businesses and of individual entrepreneurs on certain grounds. Licenses and permits will be automatically renewed,” he noted.

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