UPDATE: Putin orders govt, cbank to develop plan of extra support to business

(Adds comments in paragraphs 16–18)

MOSCOW, Apr 8 (PRIME) -- Russian President Vladimir Putin on Wednesday ordered the government and the central bank to develop within five days a program of additional support of business for maintaining employment and wages.

“I order the government with the participation of the central bank to prepare a program of additional business support within five days. It should allow companies to maintain employment and employee income to the fullest,” Putin said at a meeting with regional governors on fighting coronavirus.

Putin said it is necessary to create conditions for the companies to return to the normal schedule of work.

“Now we need to create all the conditions so that companies, organizations, entrepreneurs return to their normal work schedule. I repeat, this must be done thoughtfully and carefully, closely monitoring the situation,” he said.

Putin called on regional leaders to delve into the problems of each enterprise, look for targeted solutions in conditions of the coronavirus pandemic, and create a list of enterprises that play a systemic role for the economy of the regions.

He also instructed the Finance Ministry to provide regions with flexibility and freedom of maneuver in the allocation of funds to fight coronavirus.

The government will first of all provide support to the companies that keep employment and will directly help those people who lost their jobs, Putin said.

“I consider the following formula to be fair: first of all, to help those companies that maintain employment. But if, however, people find themselves unemployed, then in this case we will directly help them – those citizens whose incomes have decreased, to families with children who are currently in difficulty, people who cannot maintain their loans in the same volume,” he said.

The president proposed to pay 3,000 rubles per child under 18 years during the next three months to parents who lost their jobs.

People who lost their jobs and applied to the employment services after March 1 should receive an unemployment benefit equal to the level of the minimum wage of 12,130 rubles in April, May, and June.

Putin also proposed to spread a 6-month deferral on insurance payments provided for micro businesses earlier to affected small and medium businesses as well.

Debts of small and medium businesses should be restructured and paid in parts, he added.

He also ordered the government and the central bank to consider extending the program of holidays on consumer and mortgage loans so that it becomes affordable for a bigger number of people.

Putin said Russia has experience of overcoming crises in order to cope with coronavirus. It has a stable macroeconomic situation, a minimum level of state debt, and a solid safety cushion.

“We will work confidently and rhythmically, professionally. I emphasize – we have everything for this: a stable macroeconomic situation, a minimum state debt, a solid “safety cushion” in the form of reserves accumulated over previous years, there are means to solve problems in any of the possible scenarios, and finally, we have experience in overcoming the crises of past years,” he said.

Coronavirus control measures should be sufficient from an epidemiological point of view, but not destructive for the economy, Putin said.

“And finally, I ask the Russian government to analyze all the materials that will be received from the regions, in the most careful way, to properly approach the proposals of the governors, regional leaders, from the point of view of the sufficiency of those measures that are taken from an epidemiological point of view on the fight against coronavirus infection, but at the same time from the point of view of efficiency and feasibility of measures taken from the point of view of the economy,” Putin said.

“These measures should be sufficient from an epidemiological point of view, from the point of view of epidemiological requirements, but not destructive for the economy,” he said.

Putin said it is necessary to fully use capacities of federal medical centers to fight coronavirus.

He also said the government will allot 10 billion rubles to regions for additional payments to medical personnel amid the coronavirus outbreak.

“We have also provided additional payments to doctors, nurses, medical personnel for special working conditions and increased workload. Funds from the federal budget for these purposes – more than 10 billion rubles – have been allocated and will go to regions soon.”

(75.4550 rubles – U.S. $1)

End