Russia’s big banks have exhausted their limits for preferential loans for internal combustion engine (ICE) cars. The Kommersant newspaper writes about this, citing sources from the automobile market and banks.
Since January 2023, 5.1 billion rubles have been allocated for the provision of preferential car loans, but the money ran out in the spring. The head of the Ministry of Industry and Trade, Denis Manturov, announced in November plans to additionally finance the program with another 1.2 billion rubles.
The money was supposed to compensate for the drop in car sales after the key rate was raised to 15%. However, the allocated funds have already been exhausted and there are no resources to support car sales until the end of the year.
The Ministry of Industry and Trade noted that the program “continues to operate for educators, medical workers, SVO participants and members of their families, as well as citizens with disabilities.”
The preferential car loan program will return in 2024 with a record financing volume since 2020 of 17.3 billion rubles, but this money will be spent within a few months, according to banks. In early November, Prime Minister Mikhail Mishustin announced that the authorities would allocate 30 billion rubles to the preferential car loan program in the period 2024-2026.
- In mid-November, Russian dealers were unable to sell the remains of cars from brands that had left the country. For example, Kia still has the 2022 Cerato and Seltos in stock, while Volkswagen still has the Taos and Tiguan.
Author:
Karina Pardaeva
Source: RB
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