OREANDA-NEWS. December 15, 2008. Russian auto makers have begun to offer component suppliers settlement options using promissory notes. A relevant proposal was made at a conference held for KamAZ suppliers in the middle of last week, a source at one of the companies that deliver auto components to KamAZ said. According to the same source, the auto concern offered a number of suppliers to pay in cash no more than 10% of the cost of components, with the rest to be paid through promissory notes with payment to be made in three months or more.

The general director of another supplier of the truck maker also confirmed AvtoVAZ also proposes using promissory notes as the principa means of payment. "This week at the negotiations we were told (verbally) that AvtoVAZ is going to present to suppliers for payment promissory notes to be issued, as far as I know, by Sberbank. We said we cannot use these schemes. They eventually agreed to pay us in rubles. These arrangements are not made in writing. All issues are being discussed" – the source said adding that some payments are already delayed. A proposal to use promissory note payment schemes, according to a respondent, was also made by Sollers (former Severstal-Avto) to its suppliers.