Translation. Region: Russian Federal
Source: Ministry of Economic Development (Russia) – Ministry of Economic Development (Russia) –
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The Ministry of Economic Development of Russia has completed accepting applications from small and medium-sized businesses as part of the first selection for subsidizing the costs of placing securities on the stock exchange and investment platforms. The program is being implemented with the participation of the Bank of Russia and is aimed at enterprises from the real sector that demonstrate a multiplier effect for the economy as a whole.
"A total of 14 applications from 13 Russian small and medium-sized businesses were submitted to the Ministry of Economic Development of Russia for consideration during the first selection under the program. The share of small businesses that submitted applications is 70% of the total number of selection participants. The geography of the participants is Moscow, Penza, Oryol, Chelyabinsk and Nizhny Novgorod regions, the Republic of Tatarstan and Krasnodar Krai," noted Deputy Minister of Economic Development of Russia Tatyana Ilyushnikova.
Most of the applications are related to reimbursement of costs for the placement of bonds, the total nominal volume of which exceeded 1.7 billion rubles. This confirms the demand for government support measures to expand business access to the stock market.
The subsidy can be used to compensate for a number of costs:
— payment of remuneration under agreements on the organization of placement and (or) placement of an issue of shares or bonds;
— payment of remuneration under an agreement on the implementation of rating actions (in the event of assignment of a credit rating to the recipient of a subsidy or the issue of bonds);
— payment of remuneration under an agreement for the provision of services to attract investments;
— payment of remuneration for the services of the registrar under the agreement on registration of the decision to issue shares;
— payment of remuneration under an agreement for the provision of audit or legal services.
"This program allows attracting capital at all stages of enterprise development. For young and small companies, crowdfunding platforms may be the most suitable option, while for more mature companies, it may be entering the stock market. Thus, government support measures cover the entire range of business financing instruments. And the demand for them is growing: since the beginning of the year, SMEs have placed bonds worth 32.2 billion rubles on the stock market alone. We also note the development of equity financing in general, since in the current macroeconomic conditions it allows companies to attract capital without the need for regular payments, such as occurs with a loan," explained Mikhail Mamuta, member of the Board of Directors of the Bank of Russia, Head of the Service for the Protection of Consumer Rights and Ensuring the Availability of Financial Services.
Key conditions for receiving a subsidy: to be included in the SME register, to operate in priority sectors (manufacturing, transportation and storage, tourism, information and communications, scientific and technical activities, healthcare), to be a small technology company or a subject of creative industries, not to be part of a group of companies with annual revenues exceeding 2 billion rubles. The results of the first selection will be announced in early September.
The program of subsidizing SMEs' costs for the placement of securities is being implemented within the framework of the federal project "Small and Medium-Sized Entrepreneurship and Support for Individual Entrepreneurial Initiatives" of the national project "Efficient and Competitive Economy". Its goal is to assist companies in attracting financing through stock market mechanisms.
Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.
