For the Benefit of Development of the Agricultural Potential

The initiative of the President to amend the law "On the State Reserve Fund PMR" was considered in the course of the plenary session. Let’s remember that the current law was adopted in 2008, when the Russian Federation granted aid to support agribusiness republic. It was decided to send funds for lending to businesses. The law prescribed purposes, the procedure for granting loans and measures of responsibility for the timeliness of their return. The assistance of RF in 2011 was spent according to the decision of the Supreme Council, which also prescribed the appropriate conditions.

Development of amendments to the existing law, as noted by the director of the state reserve Lyudmila Gagun, representing the law-in-draft is due to the need to create conditions to reduce the negative economic impact of the devaluation of the currencies of foreign countries and improving the provision of support to the agriculture entities. In particular, it was proposed to provide interest-free loans to citizens in the amount of not more than one thousand dollars who possess land for private farming. It was about the reduction from five to three percent rate when lending to agribusiness entities for the purchase of buildings, agricultural machinery, as well as for financing of capital investments in the construction of irrigation systems and for sprinklers purchase. In this regard the law-in-draft provided term of lending up to seven years, the current legislation - up to five. The document also states a loan for 5 years at 5% per annum for perennial plantations planting in the territory of republic.

Lawmakers agrarians approved these proposals in the course of parliamentary committee meeting, but the discussion was caused by the author's proposal to convert the Fund of the state reserve into foreign currency according to decision of the Government. The parliamentarian Efimy Koval at the meeting of the Committee and the plenary session noted that the funds should be converted only by the decision of the Supervisory Board of the state reserve fund.

The law-in-draft was adopted in the first reading during the voting. The document will be finalized based on the comments and suggestions for the second reading.