Govt to Inject 30bn in Airlines
Release Date: 2008-10-27
Source:KommersantThe RF government will commit Finance Ministry and the Central Bank of Russia (CBR) to elaborate proposals for crediting Russian airlines for the amount of up to 30 billion ruble, RIA Novosti reported.
The money will go to buy aviation fuel before the end of this year, specified Vice Premier Sergei Ivanov. Finance Ministry is ready to appropriate the amount. Russia’s airlines will also benefit from the half-year deferred payment of import duties imposed on foreign jets with the layout of 50 seats to 300 seats and on the aircraft components and parts.
Russia’s media reported earlier that the country’s airlines had requested 50 billion ruble to sustain the industry. A new holding, Airlines of Russia, that was set up based on the assets of AiRUnion, will seek the government’s assistance as well. It needs a loan of five billion ruble to settle the debts of companies to be taken over by the holding.
What’s more, the government has sanctioned Finance Ministry to monitor financial standing of the airlines. For this purpose, Ivanov pointed out, the ministry will set requirements for financial soundness of the airlines, which will report to it.
| Type: | NORMAL |