MINSK, 1 February (BelTA) - The Russian Industrial Development Fund (IDF) has expanded soft loan financing possibilities for wood processing plants. According to the IDF, this will enable Russian companies to lease harvesters and forwarders, including those produced by Belarusian Amkodor, on preferential terms, BelTA learned form the press service of the Belarusian mechanical engineering company Amkodor .
Under the Forest Industry Projects program, which was launched in December last year, soft loans are provided to finance modernization of timber processing facilities through the acquisition of technological equipment. The IDF Supervisory Board has expanded the list of equipment under the Leasing Projects program.
"These measures are designed to facilitate the development of value-added timber processing in the country," said Denis Manturov, Russian Industry Minister, head of the IDF Supervisory Board.
Now the IDF's Leasing Projects program provides loans to lease harvesters and forwarders at 1% per annum. In addition, preferential terms are granted to lease loading and unloading equipment and self-propelled vehicles, including forklifts and cranes.
The federal and regional funds provide joint loans from RUB20 million to RUB100 million at 1-3% per annum in a ratio of 70% (federal funds) to 30% (regional funds). For larger projects there is the Development Projects program with loans ranging from RUB50 million to RUB500 million.
The Industrial Development Fund has already issued more than 60 loans under the current financing programs to set up new wood processing plants or upgrade the existing totaling RUB13 billion.
