AvtoVAZ is closer to securing its long-term future after state-owned bank VTB said it expected a RUR10b (US$337m) debt payment from the carmaker within the next month.
The company needs to pay back about RUR38bn (US$1.3bn) of short-term debt and Prime Minister Vladimir Putin has allocated RUR28bn(US$950m) from the state budget in aid for AvtoVAZ.
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VTB board member Valery Lukyanenko told Reuters that he expected the RUR10bn ruble payment in full and without a discount, although he could not say exactly how much would be put up by the government.
AvtoVAZ came close to bankruptcy last year Russian car sales plunged 50%. It has since received backing from French shareholder Renault SA as well as the government, which fears job widespread losses and social unrest at the automaker’s one-industry town of Togliatti.
