Guarantee Fund of the Republic of Tatarstan has fixed the guarantee rate for loans and bank guarantees

The agency fixed the interest rate for standard guarantee products: 1% - for credit agreements and 0.5% - for bank guarantee agreements.

Since January 2020, the Guarantee Fund of the Republic, subordinate to the Ministry of Economy of Tatarstan, passed to a fixed commission rate for its standard products. Now, the commission for providing guarantees by small and medium-sized enterprises under the loan agreements is set at 1% per annum. Previously, it ranged from 0.75 to 1.5%.

The rate on bank guarantees until January 2020 ranged from 1.15 to 1.5%, from the current year it is 0.5%. This product is provided to small and medium-sized businesses to participate in tenders, government orders, in advance for the execution of contracts.

“The decision to reduce the commission on guarantee products for business was made against the background of a decrease in the key rate of the Central Bank. This measure will allow entrepreneurs to invest more in their projects, which will generally positively affect the entire economy of the region”, said Farid Abdulganiev, Minister of Economy of the Republic of Tatarstan.

In 2019, the Guarantee Fund of the Republic of Tatarstan issued 274 guarantees in the amount of 1.5 billion rubles and helped entrepreneurs attract financing in the amount of 5.5 billion rubles.