Sberbank will provide two key companies of S7 Group with subsidized payroll loans at 2% per annum under the Russian government’s lending program. They’re the first loans that the bank will provide under the new program being implemented following a decree approved by the government. The loans received by the two companies S7 Airlines and S 7 ENGINEERING amounted to RUB 1 bln and is due for repayment within 13 months.
The funds are to be used to pay wages to employees of the enterprises. According to the program terms, if a company keeps at least 90 percent of its employees on its books, 100 percent of the principal and interest will be written off as of April 1, 2020. If a company saves at least 80 percent of employees, 50 percent of the loan will be written off. Loans are available both to commercial and socially-oriented non-commercial organizations.
