Russia’s government is reportedly considering a big bail-out to help ailing AvtoVAZ.
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The government is planning an injection of as much as 54.8 billion roubles in order to help the company avoid bankruptcy.
Russian prime minister Vladimir Putin said yesterday at a conference that the money was intended to help the Russian company repay its debts.
Russian and foreign shareholders of AvtoVAZ must also present an adequate development program for the post-crisis period, Putin said.
The government is ready to take the commitment, but “it will settle the debts together with creditors,” Putin said. “I hope the creditors understand the current economic conditions and the status of the plant they have credited. Certainly, the debts will be paid at a certain discount,” he added.
