OREANDA-NEWS. February 15, 2010. No.56 Decree of the Government of the Russian Federation determined conditions for providing subsidies in 2010 to Russian credit organizations from the federal budget for shortfall in income on loans, granted by Russian credit organizations in 2009 - 2010 to physical persons for buying automobiles, reported the press-centre of FAS Russia.

The Government of the Russian Federation made a decision to prolong the Programme for Auto Loans on Preferential Terms for 2010, allocating for it 1 billion Rubles. It is essential that any credit organization will be able to participate in the Programme.

Initially only those credit organizations were allowed to grant state-subsidized auto loans on preferential terms, for which the share of the Russian Federation or the Bank of Russia in their authorized capital was at least 50%, as well as credit organizations - their subsidiaries. In July 2009, the banks with internal funds no less than 70 billion Rubles were also allowed to participate.

In October 2009, upon a FAS Russia's initiative, supported by the Ministry of Industry and Commerce of the Russian Federation, the Ministry of Finances and the Ministry of Economic Development, the Programme for Auto Loans on Preferential Terms was amended in accordance with No.855 Decree of the Government of the Russian Federation of 29th October 2009.

Following these amendments, any credit organization, wishing to participate in the Programme for Auto Loans on Preferential Terms, could do it. To participate, credit organizations could file a statement, prepared in any form, to the Ministry of Industry and Commerce of the Russian Federation from 1st November to 1st December 2009 about its intention to receive compensation from the federal budget for the shortfall in income on loans. In 2009 more than 90 credit organizations took this opportunity.

The decision made by the Government of the Russian Federation establishes competitive terms for bank participation in the Programme in 2010.

To obtain subsidies for the loans granted to physical persons in 2010, credit organizations must by 1st March 2010 file a statement to the Ministry of Industry and Commerce of the Russian Federation, prepared in any form, about their intention to receive compensation from the federal budget for the shortfall in income on loans.

The decision of the Government of the Russian Federation on possibility of any credit organization to of participate in the Programme ensures equal access to financial resources for all credit organizations, encourages competition in the banking market, which will also enable increase the scope of automotive lending and resolve a macroeconomic problem of increasing sales of Russian car-makers.