On the15th of April, the Moscow City Government adopted the third package of measures to support the capital's business.
It concerns providing credit and assistance for entrepreneurs.
As the Mayor of Moscow, Mr. Sergey Sobyanin, wrote in his blog, "according to our assessment, the main caveat to small and medium-sized businesses is the lack of funds to pay for previously acquired loans and the inability to get a stabilizing loan to survive the current pause in demand. Therefore, in the coming days, together with commercial banks, the Moscow City Government will launch an unprecedented program of credit support for small and medium businesses".
According to Resolution No. 405 of the Moscow City Government, on the15th of April, 2020 "On Amending Resolution No. 212 of the Moscow City Government of 24 March, 2020", small and medium-sized businesses of the capital, regardless of the type of activity, will receive subsidies from the city budget to pay the interest rate up to six percent per annum on previously granted loans. For the new stabilization loans, which were taken to cover current activities, subsidies will cover the rate of up to eight percent per annum.
The largest operator of the credit program will be Sberbank. "We have a preliminary agreement on granting a delay for six months on payment of the principal amount of their debt", - Mr. Sobjanin has informed.
Similar projects are planned with other banks that are willing to lend funds to small and medium-sized businesses.
"To participate in the credit program, the Moscow City Government provides help for the entrepreneurs only one condition - to spend money on businesses, operating in Moscow. And we hope that the priority will be the payment of wages", - specified Mr. Sobyanin.
The third package also includes several other measures that complement and extend the first and second packages.
Thus, until December 31, 2020, a deferral of advance payments for the first quarter of 2020 on corporate property and land taxes will be introduced. These benefits will be granted to cinemas, organizations of additional education, sanatoriums and rest homes, organizers of exhibitions and conferences - a total of about 300 organizations.
Landlords, leasing hotel accommodations, will receive compensation for property tax and land payments for the second quarter of 2020, if they reduce the rental rate by at least 50 per cent. Experts estimate that this measure will help about 1.4 thousand hotels.
Also, a 50 percent compensation for property taxes and land payments for the second quarter of 2020 will be received by the owners of real estate, engaged in trade, catering, hotel business and provision of consumer services. All in all, this applies to about 2.6 thousand organizations.
The construction and development business will receive deferrals of payments for changing the purpose of providing land plots and similar payments to the city budget.
About 3.3 thousand entrepreneurs, who rent real estate from the city and previously entered into agreements to buy it out, will also receive a deferral. The redemption payments for the second quarter will be postponed until the end of 2020.
"We will continue to develop measures to support the economy, engaging in a dialogue with businesses and entrepreneurs. First of all, it will be aimed at preserving and maintaining jobs", - wrote the Mayor of Moscow.
Materials from the official website of the Mayor of Moscow www.mos.ru were used