World meat industry news

The Government of the Russian Federation plans to allocate almost 36 billion rubles in 2022-2024 to compensate agricultural producers for the costs of loans due to the increase in the Central Bank rate at the end of February 2022. This is stated on Friday in a draft resolution of the Cabinet, which is at the disposal of TASS.

"In order to level the consequences of an increase in the key rate of the Central Bank of the Russian Federation for agricultural producers who have entered into loan agreements (loans), the interest rate for which depends on the current key rate of the Central Bank of the Russian Federation, the draft resolution proposes to establish the amount of reimbursement of part of the costs of paying interest on investment loans (loans) , the interest rate for which depends on the key rate of the Central Bank of the Russian Federation, at the expense of the federal budget in the amount of 100% of the current key rate," the document says.

"The total amount of financial support for the implementation of the decision provided for by the draft act for 2022, 2023 and 2024 is 35,971,517,600 rubles," the draft resolution specifies.

As noted in the draft, in connection with the increase in the key rate of the Central Bank of the Russian Federation from February 28, 2022, it is proposed to extend this rule from March 1, 2022. At the end of February, the Bank of Russia raised the key rate by 10.5 percentage points to 20% per annum. The Central Bank pointed out that the external conditions for the Russian economy had changed dramatically, the increase in the key rate was supposed to maintain financial and price stability and protect citizens' savings from depreciation. After this decision, the key rate was reduced several times. In particular, on July 22, the Board of Directors of the Central Bank of Russia lowered the key rate from 9.5% to 8% per annum. According to the base forecast of the Bank of Russia, the key rate in 2023 will be from 6.5% to 8.5% per annum, in 2024 - 6-7% per annum, in 2025 - 5-6% per annum.