Russian car manufacturers, faced with slumping demand and big debts, have asked for state guarantees totalling nearly 30bn roubles (US$863m), the Vedomosti business daily reported on Wednesday.
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Russian authorities have made a list of strategic companies that would be entitled to preferential government support during the crisis, including state guarantees for loans, Reuters said.
AvtoVAZ, which has amassed large debts with parts suppliers as demand for its cars dropped sharply, has asked the state for guarantees worth 10bn roubles, its president Boris Alyoshin told Vedomosti.
The request was considered by a working group from the industry and trade ministry on Tuesday, a government source told the paper. AvtoVAZ has been told to show that banks are ready to lend it 20bn roubles, and to explain how it plans to spend the money, the source said.
Alyoshin said AvtoVAZ plans to ask state banks for the rest of the money, and will use it to pay back suppliers, whom it owes 15bn roubles, Reuters said.
The company also faces a bond option worth 5bn roubles on 28 May, must pay back bonds worth 3bn roubles by 5 June and a 5bn rouble Sberbank loan by 5 June, Vedomosti said, quoting the company’s reports.
Representatives of Sberbank and fellow state-controlled banking major VTB have said they are ready to work with car manufacturers, Vedomosti said.
Truck maker Kamaz has asked for state guarantees for 4.5bn roubles and carmaker Sollers has requested 5bn, company and government sources told Vedomosti. GAZ , controlled by aluminium magnate Oleg Deripaska, has asked for 10bn roubles, the report added.
