OREANDA-NEWS. March 20, 2009. The Russian authorities intend to help domestic automakers to receive up to RUB 130 bn (USD 3.8 bn at the current exchange rate) in the form of loans and bond issues, also pledging to offer tax holidays. The largest Russian car makers, which have lost most of their orders and access to borrowings during the crisis, have already requested help from the authorities.

The draft anti-crisis program for 2009 posted on the government’s website (www.government.ru) on Thursday says that the state plans to provide assistance in placing car makers’ bonds for a total of up to RUB 60 bn and allocating credit limits to them up worth RUB 70 bn. Earlier, AvtoVAZ and GAZ registered bonds valued at RUB 20 bn each and KamAZ announced plans to issue debt securities worth RUB 10 bn.

The government reported that in the event of bond placements with maturity less than 5 years, the state intends to offer the mechanisms of state guarantee and refinancing the securities by the Bank of Russia. Credit lines for the automotive industry will also be secured by state guarantees. In addition, according to the program, authorities plan to grant car makers 2-year tax holidays for repayment of fiscal arrears.