Sberbank will provide Aeroflot PJSC with RUB 1.85 bln in financing under Decree No. 696 as of May 16, 2020, approved by the Government of Russia. The loan is provided until June 30, 2021 and will be used to pay wages.

Alexander Vedyakhin, First Deputy Chairman of the Executive Board, Sberbank,

'Aeroflot is the leader of the Russian airline industry that is well-known across the globe. We are always ready to provide the company with comprehensive support, understanding how important its work is for the industry and the Russian economy in general. The lending program at a rate of less than 2% is an efficient tool to support business. It has already helped thousands of enterprises of different sized and with different portfolios to minimize the consequences of their suspended operations and lower revenues, save jobs and resume their operations.'

The bank also provided five Aeroflot Group companies (Rossiya, Aeromar, Aurora, Pobeda, Sherotel) with financing totaling RUB 1.8 bln under the lending program at 2% in July 2020.

The government payroll lending program at 2% per annum is implemented as part of Decree No. 696 as of May 16, 2020, approved by the Government of Russia. According to the program terms, if a company keeps at least 90% of employees, 100% of the principal and interest will be written off on April 1, 2020. If a company saves at least 80% of its staff, 50% of a loan will be written off. Loans are available to commercial and socially-oriented non-commercial organizations

The size of a loan will depend on the number of employees multiplied by the minimum wage and the number of full months between the day when the loan is issued and December 1, 2020. Prolongation is possible if several terms are met, which are aimed at keeping the number of employees unchanged and proving a company is operating effectively. The maximum loan term is set on June 30, 2021 and on April 1, 2021 when the debt is written off.

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Sberbank of Russia published this content on 28 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2020 09:30:10 UTC