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Targeted financing becomes a reality in Russia — Economic Development Minister

The Economic Development Minister Alexey Ulyukayev explained that targeted financing has been created as banks are reluctant to finance investment projects

Economic Development Minister Alexey Ulyukayev Yekaterina Shtukina/Russian government's press service/TASS

Economic Development Minister Alexey Ulyukayev

© Yekaterina Shtukina/Russian government's press service/TASS

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NOVO-OGARYOVO, February 4. /TASS/. Targeted financing has become a reality in Russia, Economic Development Minister Alexey Ulyukayev said at a government meeting with President on Wednesday.

"The institution of targeted financing has been launched in Russia," Ulyukayev said, adding that it took the whole last year to set out the legal basis for it.

The minister explained that targeted financing has been created as banks are reluctant to finance investment projects. The newly-formed institution will make it possible to share risks between the initiator of the project, which must finance 20% of the total value from its own funds, the lending bank and the budget, as well as the Bank of Russia.

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Economy Alexey Ulyukayev Economic Development Ministry

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