Government approves 10-billion-rouble guarantees for Kamaz and Sollers

Kamaz and Sollers are to be provided 5 billion roubles in governmental loan guarantees, said Monday the first deputy premier Igor Shuvalov at a meeting with the president of Russia Dmitry Medvedev.

According to Mr Shuvalov, 26 producers had requested aid from the government in the amount of over 350 billion roubles. State support is considered in six forms, including state guarantees, interest rate subsidies, additional capitalisation, restructuring liabilities, placing public orders and stimulation through protectionist measures. State guarantees are most popular with companies, 231 billion roubles having been requested. Decisions have been made on allocating state guarantees for six enterprises in the amount of 47.4 billion roubles, the work on the other applications is continued, reported the deputy prime minister.

Requests have been approved from Sollers, Kamaz, Gaz and Chernyshov MMP, Mr Shuvalov told Vedomosti without specifying the guarantee amounts. Company officials told Vedomosti that Kamaz and Sollers had each been granted 5 billion roubles in state aid.

Representatives from the two firms said they had not yet received the guarantees. Medvedev hurried Shuvalov saying that not one guarantee had yet been provided. “The price of the issue is halted production runs.” The application has been approved but we have no documents in hands, we have nothing to take to the Finance Ministry, explained the Sollers representative.