Sberbank of Russia : to provide S7 Group with two loans at 2% under government lending program

• The total amount of financing for S7 Airlines and S 7 ENGINEERING is about RUB 1 bln
• Lending term for the payroll loan is 13 months
• Under the program, the bank has already received 29,000+ loan applications worth RUB 51.5 bln; more than 8,500 of them worth some RUB 15 bln have been approved

June 1, 2020, Moscow - Sberbank will provide two key companies of S7 Group with subsidized payroll loans at 2% per annum under the government lending program. These are the first loans that the bank will provide under the new program being implemented following Decree No. 696 as of May 16, 2020, approved by the Government of Russia.

S7 Airlines and S 7 ENGINEERING are approved to receive financing amounted to RUB 1 bln. The financing term is 13 months. The loan will be used to pay wages to employees of the enterprises.

Anatoly Popov, Deputy Chairman of the Executive Board, Sberbank,

'Today we have signed loan agreements with S7 Group, our long-term and reliable partner, as part of the new government program. We hope that this financing will help the company to successfully cope with all the difficulties that are caused by the pandemic across the globe. The volume of the financing under the new government program which is provided by Sberbank is RUB 95 bln. Even though the program officially starts today, we have received more than 29,000 applications totaling RUB 51.5 bln, and more than 8,500 of them totaling RUB 15 bln have been approved, so our customers will soon receive the first tranches as part of the financing under the program.'

According to the program terms, if a company saves 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 employees, 50% of a loan will be written off. Loans are available to commercial and socially-oriented non-commercial organizations.

The borrowed amount 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, while for loans that'll be written off it's set on April 1, 2021.