Many BEI and BERD financial instruments are provided specifically to this category of small businesses, says the explanatory note to the draft, which was developed by the Ministry of Economic Development and Digitalization.
A separate category of entities will be introduced into the law
The Ministry proposes to introduce a separate category of economic entities into the Law on Small and Medium-sized Enterprises. In this case, the number of employees of a “small enterprise with medium capitalization” may be more than 250 but less than 750 people, and the annual turnover may not exceed 150 million euros or the total annual balance of 129 million euros.
In particular, it is proposed to improve access to finance and incentivize investment in technology to increase their productivity. In addition, such enterprises will be supported for exports through ODA-managed credit guarantee instruments, as well as facilitating access to the capital market by guaranteeing the issuance of corporate bonds.
It is also envisaged to de-bureaucratize their activities by reducing restrictions and administrative burdens.
The concept of “export credit” is being introduced
At the same time, the Law on Small and Medium-sized Enterprises is proposed to be supplemented with the concept of “export credit“. This is an insurance, guarantee or financing mechanism that allows deferring payment for short-term (up to two years), medium-term (from two to five years) and long-term periods (usually more than five years).
Such loans will be administered by ODA. And the forms, terms, and procedures for providing support for export credit operations with maturities of two years or more will be established by the government.
Additional conditions will be set for receiving support under each assistance program.
