Government RB analyzed efficiency of business support

Development of business undertakings in Bashkortostan and real output fr om the finances, appropriated for support of small and medium business in 2009, was considered today at the expanded meeting of Government RB.

Business has received the extraordinary large volume of financing -in sum more than 1,8 billion rubles. 500 million rubles was taken fr om the Republican budget and other 573 million rubles was appropriated from the federal exchequer on the terms of co-financing. Besides, Bashkortostan received the lim it at the rate of 800 million rubles for activation of crediting for business. In a whole Russian Government has transferred 27 billion rubles to JSC “Russian Development Bank” for strengthening of business support. The bank in its turn redistributed the means among regional banks – the banks received this money for the term of five years under 10,5% of interest per annum. The lim it at the rate of 800 million rubles, meant for Bashkortostan is the maximal sum in 2009. The second index was for Tatarstan – 623 million rubles.

The main direction of the Republican program for development of small and medium business in 2009 is the financial support of business. Businessmen have submitted more than 2,9 thousand applications for obtaining 2,2 billion rubles in total complexity. They may receive the money on different directions. The financing of the initial business stage turned out to be the most demanded (so-called start-up). 999 claims for start-up capital have been submitted and it is almost 381 million rubles in money terms – 3,8 times more than it was previously pre-planned. In reality 116 million rubles was appropriated for start-up from budgets of different levels. 406 small business subjects received state aid and the average volume of financing per one recipient made 286 thousand rubles.

The main goal of the program is not just the support of local business but the push for development of local economics and provision of social stability in the region. In order to help the businessmen to get credits in the banks Bashkortostan practices new mechanisms of state support and one of such mechanisms is the guarantee fund. For today the amount of the fund’s reserves is 522 million rubles. The autonomous non-commercial organization “The Center of small business micro-financing” started working in Bashkortostan in June. 100 claims for the sum of 80 million rubles have been received by it. 85 claims for the sum of 67 million rubles have been considered and positive decision is reached on 72 claims. The total sum is 52 million rubles. One borrower received 726 thousand rubles on average. All loans are repaid in time and no unpaid debts are registered for today.

One more novelty ion 2009 is micro-loans under guarantees of big industrial enterprises for those businessmen, who work with these enterprises on sub-contraction and outsourcing. At present time 5,4 million rubles is given out under guarantees of JSC “UZEMIC” and same question is under discussion with JSC “UMPO”.

One more direction in financial support of business is connected with activity of the leasing fund. At the expense of the fund’s means the businessmen may acquire the main assets for work in production, processing, agricultural and building spheres. The commission of the fund has considered 30 claims for the overall sum 54 million rubles. 12 claims for the sum of 20 million rubles were approved.

What is the efficiency of the funds, meant for small and medium business? The share of small business in the gross regional product, the level of unemployment, the level of economics diversification and various indices of social “state of health” may become the answer – it is too early to make any conclusions now.