OREANDA-NEWS  The Russian authorities are discussing measures to support AvtoVAZ due to the growth of its debt burden. This is reported by interfax.ru with reference to the head of Rostec State Corporation Sergey Chemezov.

"Indeed, AvtoVAZ's credit burden is high. We continue to invest in deepening localization, increasing production, and updating the model range. Because without investment, there will be no competitiveness. However, with the growth of the key interest rate, interest payments to banks increased by billions of rubles per year," Chemezov said.

According to him, 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.

In August 2024, Alexander Vinogradov, head of the Department for Interaction with Federal Authorities of AvtoVAZ JSC, said that discussions at the government level on possible steps to ease the debt burden on AvtoVAZ had been suspended due to the company's sales growth.

"This topic was discussed, and even a specific instruction was formed. But in the end, all this has been put on pause for now, because our financial indicators have started to improve, sales have gone well," Vinogradov said.

Maxim Sokolov, President of AvtoVAZ, said in February 2023 that the company's debt burden at that time amounted to more than 100 billion rubles. According to him, it is of a floating nature, since some credit lines are being closed, some credit lines are being reopened.

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

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