The Lugansk People’s Republic Industry Development Fund (FRP) has increased the sum of loans for regional companies from 100 million rubles to 200 million rubles, the FRP press service reported.
The loan size limit has increased under a joint program with the Federal Fund which covers 90 percent of the loan,” FRP LPR Director Violetta Vorobyova said. “The co-funding principle enables us to help a larger number of enterprises thanks to more effective use of available resources.”
The joint program would be useful for companies that encountered high costs of modernization and production development, as well as a lack of large investments. The list of loan purposes has expanded: for example, a company can now take a loan to create a new product or technology, she said.
LPR companies can seek a second FRP loan under the new program after a period of six months since the signing of the first special-purpose loan agreement.
Vorobyova earlier said that the FRP was considering seven projects worth 450 million rubles. As of November 28, the Fund had financed 13 regional projects worth more than 790 million rubles.
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In March 2023, the LPR government approved the establishment of the regional Industry Development Fund. It is expected to provide support to some 20 LPR companies at the initial stage.*i
