First loan provided in Donetsk People's Republic - TV Report

The first loan has been provided in the Donetsk People's Republic. The contract is registered to receive cash flows from a non-resident – a Russian entrepreneur. The very procedure of registration is carried out through the DPR Central Bank. Loans became available in December last year and several agreements are done.

At this moment, central bank of DPP does not provide loans, therefore our enterprise is looking for a Russian investor on its own. A borrower opens an account in Central Republican Bank (CRB), draws up a loan from a foreign investor. That is, in fact, the state guarantee to investors that their money will be returned in time.

"The role of the Bank as the regulator is the ability to prevent groundless outflow of capital abroad. In particular, in the form of high interest rates on such loans. Therefore, the bank organized special direct restrictions", said Yuri Dmitrenko , CRB First Deputy Chairman.

These restrictions include the maximum amount of payment on the loan, including interest, commissions, penalties and other payments at the rate of 30% per annum.

The name of the enterprise and the amount of the first loan were not disclosed. It is only known that the organization works in the food industry, and the loan amount is tens of millions of rubles.

"A few more companies of the Donetsk People's Republic draw up loan agreements with non-residents, investors from other countries. In the near future they will also be provided with loans," said Dmitrenko.

Russian investments attraction will help to modernize production, increase the volume, and most importantly, create new workplaces. 

Report by Katerina Orlova, Timur Kolesnik, UNION TV, 16.2.2017

DONi News Agency