16.01.09

To improve the existing situation in the financial sector and the Russian economy as a whole, Duma deputies decided to implement changes in the federal budget for 2009-2011, including provisions for two types of government guarantees for 300 billion rubles in crisis funding. The state will protect loans received by strategic companies of the defense industry for capital investments (100 billion rubles), as well as credit towards investment into other companies (only towards improving their main economic activities) in the economy’s real sector (200 billion rubles). These loans will be given at the government's discretion.

By January 1, 2010 Russia’s internal debt on government guarantees will reach 463 Billion rubles. In addition, deputies amended the budget, increasing the maximum amount of finance available to the government for funding anti-crisis measures, including support of the labor market.

Deputies also amended the Tax Code to provide financial support to regional provinces. Now the maximum profit tax rate directed to the regional budgets of subjects of the RF equals 18% (previously – 17.5%). This means that the federal budget will receive 0.5% less of the profit tax, allowing regional budgets to receive approximately 43.1 billion rubles more in 2009. In addition, adjustments to the Fiscal Code will bring 59.4 billion rubles to the provinces, bringing them a greater share of excise duties on motor gasoline, straight-run gasoline, diesel fuel and motor oils for diesel and injector engines from 60% to 100%. Provinces have the right to create their own emergency fund and to use finances to offset their budget deficits.

Deputes insured that funds received by Russian banks as support from the State are used effectively and for designated purposes. The Central Bank is authorized to send representatives to banks that received loans from the Vnesheconombank. Central Bank officials will also visit credit organizations that hold funds from the federal budget, as well as banks receiving unsecured Central Bank credits from for terms exceeding one month.

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Source: «Российская бизнес-газета»