The Deputy Moscow Mayor for Economic Policy said in an interview with Business FM, how much of this had already been allocated and through what channels it was distributed.
How does Moscow address the issue of rental payments for entrepreneurs? How much will the affected business get allocated?
- We recalculated support measures primarily for small businesses, reconciled the amount of tax payment postponements, checked all the referrals in rental payments and double-checked once again the amount we reserved for grants to compensate for property tax for those landlords who made discounts for their tenants - it makes RUR 85 bn at the moment. It will directly cost the Moscow budget about RUR 60 bn, the rest is the referral in tax payments.
How much of this has already been allocated and through which channels is it distributed?
- As of now, the terms of Moscow tax payments in the amount of RUR 10+ bn have been postponed. If we talk about the allocated funds, all programs aimed at compensating property tax for tenants and subsidizing interest rates for small businesses are reserved in the budget. About RUR 7 bn of loans have already been approved for small businesses, and entrepreneurs continue submitting their applications.
Is targeted support there for business, if not in terms of rent and taxes, but in terms of support for those who are in a very deplorable situation?
- We have provided for a universal norm, a universal measure of support for entrepreneurs when it comes to subsidizing interest rates. Small entrepreneurs from any industry can apply for this support measure.
What do they need to do to get support, what is the algorithm for action?
- They apply to the banks the Moscow Government has signed an agreement with, these are all major banks. The banks consider their loan application and the Moscow Government compensate part of the rate.
It is difficult with banks now: we talked to businesses, especially to small ones, many of them complain that banks do not give approvals. 150 conditions must be met, which they are often unable to meet now because they are in a difficult situation. What should we do then?
- It's a market mechanism. If the bank does not approve a company loan, it means that its financial situation is not stable or the entrepreneur has not properly grounded the application.
If for instance a Moscow entrepreneur is on the list of affected businesses, what should he do to get support?
- Everything related to the referral in tax payments is done automatically. For all rent agreements we consider compliant with the intended purpose of premises or land plots, we have ceased to charge fines and penalties and do not make claims under these rent agreements. However, the tenant has to submit an application to us to make an appropriate recalculation.
Are there any other support options, other than rent and loans, because RUR 60 bn have been allocated for something?
- The bulk of these funds is used to subsidize the interest rate. We think it is one of the most effective support mechanisms. Moscow used to have a wide range of measures to support small businesses and industrial enterprises even before the pandemic. All programs that were previously in place have been kept, they include grant support and support for exporters.