Financially challenged AvtoVAZ has said it has spent nearly all the 33 billion roubles (US$1bn) in bailout loans it has received from the Russian government.
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In a statement, AvtoVAZ said it had spent 24.3 billion roubles out of a 25 billion rouble loan, having repaid the 8.04 billion rouble bridge loan, 14.02 billion roubles to suppliers and the rest as wages, taxes and loans.
It has also spent 6.17 billion roubles from the bridge loan to settle accounts with suppliers, 1.63 billion roubles to pay wages and 0.2 billion roubles to pay taxes.
It said the state loans allowed it to see overdue debts fall 75 percent, while the amount it owes suppliers fell by over 85 percent.
Sales of new cars in Russia, a year ago the fastest growing market in Europe and threatening to usurp Germany as number one, continue to plummet – falling 58% in July compared to the same month a year ago to 115,483.
Sales are now running 50% down this year compared to 2008, leading to calls from a Russian minister for new support measures at AvtoVAZ’s car factory on the Volga to avoid social unrest.
Workers there have already held protests over job cuts and plans for shorter working hours.
