Increasing the key rate by 350 basis points at a time to 12% per annum would increase the financial burden on businesses involved in public procurement. This was reported to socialbites.ca by Maria Fedyukovich, project manager of Aktion Goszakaz.
“The fact is that even for a one-day delay under the government contract, the customer is obliged to pay a penalty to the supplier based on the current key rate. And even if the delay was allowed until August 15th and was previously calculated at 8.5%, customers will already recalculate the penalty to 12% for the same debt from August 15th. And the higher the rate, the higher the penalty,” he explained.
The Central Bank of the Russian Federation admitted that this is not the last rate increase in the near future. Therefore, the cost of a penalty to a business that defaults on government contracts will increase, Fedyukovich said.
Earlier, the Ministry of Finance had already asked government employees to intensify work with overdue government contracts. In June, institutions were ordered to liquidate everything that is owed to the enterprise by overdue receivables (other companies, the state or individual customers – socialbites.ca). Those who do this now should be penalized at a new increased rate.
Public procurement is the purchase of goods, works and services for government and municipal needs. They are regulated according to the strict rules described in the Law No. 44-FZ “On the contract system”. According to law 44-FZ, purchases are made at the expense of federal, regional and municipal budgets.
Before that socialbites.ca saidHow a sharp increase in the key rate will affect the life of Russians.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.