OREANDA-NEWS. July 23, 2009. The Russian Ministry of Industry and Commerce agreed with FAS Russia an extended list of cars included in the concessional lending programme. The list is based on the criteria set by the joint Order of FAS Russia and the Ministry, reported the press-centre of FAS Russia.

The changes to the concessional car lending programme, established by No.545 Decree of the Government of the Russian Federation of 7th July 2009, increased the car value threshold from 350,000 to 600,000 Rubles and reduced the initial fee from 30% to 15% of the car value.

According to the Order, the following cars are added to the concessional lending programme Chevrolet Cruze, Fiat Doblo, Fiat Ducato, Sko da Octavia, Hyundai Sonata Hyundai Accent, ТагАз С100, ТагАз Road Partner, ТагАз Tager, ТагАз LC100 and some models of GAZ and UAZ.

Including all cars of the above price category, manufactured in Russia in the full-cycle mode, with continued production localisation, in the List levels playing field for Russian car manufacturers. Consumers will also benefit considerably from extending the list of subsidised car manufacturing, which will ultimately encourage stability of the Russian car market.

At the same time FAS Russia emphasises that car loans under the concessional lending programme are offered by a limited number of banks. Currently they can be offered by credit organisations with state participation, their subsidiaries, and credit organisations whose own capital is no less than 70 billion Rubles as of 1st April 2009.

According to FAS Russia, such requirements to the banks are economically unjustified and reduce attractiveness of credit products offered by most of Russian banks, including those with well-developed regional representation, create unreasonable advantages for the banks with state participation and restrict competition on the market of car loans.

Extending the range of credit organisations for participation in the programme will increase the volume of granted loans and will help achieve an important macroeconomic goal: increasing sales of Russian car manufacturers.

FAS Russia forwarded its proposals on changing the programme conditions to the Government of the Russian Federation. The proposed changes will enable any credit organisation that offers loans, which meet the programme requirements, to take part in the programme.