OREANDA-NEWS. The Bank of Moscow has reduced rates for small businesses on loans secured by Loan Guarantee Agency, Non-Bank Deposit-Credit Organisation (LGA).

The first category of quality assigned to LGA securities by the Central Bank of Russia allows the Bank of Moscow reducing the risks on loan transactions with small businesses, cutting the costs of loans secured by the Agency and discounting the rate for the borrower - from 0.5 pp compared to base rates.

"Establishing the most attractive and accessible loan conditions for small business is one of the top priority tasks for the Bank of Moscow. By reducing loan rates, provided that these loans are secured by the Loan Guarantee Agency, we achieve two goals, namely we cut the costs of usage of borrowed funds for small companies and resolve the issue essential for many small businesses, which is the lack of security for crediting", Ekaterina Orlova, Director of the Small Business Department of the Bank of Moscow, underlined.

The Loan Guarantee Agency was established in 2014. In July 2014, the Bank of Moscow became one of the first banks to sign an agreement on cooperation with the Agency. Thus, the Bank acquired a new support mechanism for small and medium enterprises, which offers an opportunity to finance investment projects (acquisition and modernization of fixed assets, construction, performance of government and municipal contracts with an investment component). Clients now have an opportunity to receive a guarantee from the Agency to the extent of up to 50% of the loan amount for a period of up to 10 years. As of now the Bank of Moscow works on more than 100 transactions with small businesses secured by the Agency's guarantees.