"Vedomosti": "MONEY IN GRIDLOCK"
State support/ State support funds fail to reach automakers
Government assistance of nearly 200 billion roubles promised by the prime minister has not yet reached the automakers. By now, only two resolutions have been signed: one on state purchases of automobiles totalling 12.5 billion roubles and one on subsidising auto loans worth 6 billion roubles.
VEDOMOSTI
At a meeting with the heads of the auto companies on February 11, which discussed the implementation of Vladimir Putin's assignments, Deputy Prime Minister Igor Sechin admitted that not much had been done so far, the meeting participants said. A Government official confirmed that Igor Sechin asked the ministries to step up their work. Meanwhile, the situation is not improving: in January, sales of cars and light commercial vehicles (LCVs) dropped by over 30% (see the article on page A1).
In December, Putin promised 200 billion roubles to the auto companies. Thus far, only two Government resolutions have been signed: one to allocate 6 billion roubles to subsidise interest rates on auto loans, and one to provide 12.5 billion roubles to federal organisations for the purchase of Russian-made automobiles in 2009-2011. However, even this money is not readily available. The Ministry of Industry and Trade must first compile a list of models included in each programme. Of all the state support measures, only the higher duty rate on imported foreign cars is now effective (up to 35% from the previous 25%).
The auto manufacturer's main problem - a lack of working capital - has not been solved yet. As a remedy, the Government promised state guarantees on loans totaling 35 billion roubles and the buyout of bonds worth 60 billion roubles. A resolution on state guarantees has not been signed yet, though the Ministry of Industry and Trade is busy collecting the applications for them, an industry executive complained. The draft resolution on state guarantees stipulates that a company can use them as security for half of a loan and must guarantee the balance with its own assets (equipment, shares, etc.). According to executives at several auto companies, this mechanism does not suit the banks, therefore the resolution has not been signed. In the event of default, the bank will not be able to immediately demand compensation from the Government: it must first get the company's collateral through court, one of the employees explained to Vedomosti. Actually, the banks can get their money back only if it comes to bankruptcy, another one added.
There are problems concerning bonds as well. Vnesheconombank, or VEB, has not been allowed to purchase them yet. The Government has made it clear that there may be no buyout at all, said the top manager of an auto concern.
Representatives of VEB, Sberbank, Vneshtorgbank (VTB) and Gazprombank refused to comment.
The leasing system has not received money either. Putin promised about 43 billion roubles in three-year loans at a rate not higher than the Central Bank's refinancing rate. The Ministry of Finance refuses to release the loans thinking they will be too cheap, employees of two auto concerns said.
There is also a regional programme worth 20 billion roubles for state purchases of vehicles. The funds were given to the Ministry of Regional Development, but the ministry decided to distribute them among all regions. However, the regions must finance 30% of the costs, and not all of them are ready to do this, an auto industry executive warned. A government official from the Samara Region said that the region was not planning to buy AvtoVAZ's vehicles. An official from the Ministry of Regional Development says the programme will be launched in the near future.
Representatives of the GAZ group, Sollers, AvtoVAZ and Kamaz refused to make any official comments. Putin's press secretary, Dmitry Peskov, reassured them that all the decisions would be fulfilled in due course.
How much they may get
Kamaz asked for state guarantees amounting to 4.5 billion roubles; Sollers for about 5 billion roubles; the GAZ group wanted 20 billion roubles, but the government resolution provided for no more than 10 billion roubles. AvtoVAZ has not yet filed an application, a source at the main office said.
Nadezhda Ivanitskaya, Gleb Stolyarov, Yulia Fedorinova
