Russian officials discuss support measures for AvtoVAZ due to debts 10:40

Russian officials are discussing support measures due to the increasing debt burden of AvtoVAZ. about this reports interfax.ru, citing the head of the Rostec state corporation Sergei Chemezov.

“Actually, AvtoVAZ’s credit burden is high. We continue to invest in deepening localization, increasing production and updating our model range. Because there is no competition without investment. But with the increase in the key interest rate, interest payments to banks have increased by billions of rubles per year,” said Chemezov.

In his opinion, it would be better if this money went to investment programs. And the state understands this. Therefore, according to Chemezov, the relevant committees are now discussing how to help AvtoVAZ.

Alexander Vinogradov, head of the department of interaction with federal authorities of AvtoVAZ JSC in August 2024 statedDiscussion on possible steps at the government level to relieve AvtoVAZ’s debt burden was suspended due to the increase in the company’s sales.

“This issue was discussed and even a certain instruction was created. But in the end, all this has been suspended for now, because our financial indicators began to improve, sales went well,” Vinogradov said.

AvtoVAZ President Maxim Sokolov in February 2023 statedThe company’s debt burden at that time was more than 100 billion rubles. According to him, it has a fluctuating structure, as some credit lines are closed, some credit limits are reopened.

According to Sokolov, the company also paid more than 10 billion rubles in interest on these loans. AvtoVAZ is trying to minimize debts and relies on support mechanisms in this area.

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