Russian Defense Companies Are Facing A Credit Crunch

© Sputnik / Sergey Mamontov

TASS: Russia’s defense companies “starving” as they serve financial institutions, says Deputy PM

Yuri Borisov expressed hope that the next meeting of the defense commission in September 2019 would focus on the issue of loans for defense contractors

YEKATERINBURG, July 8. /TASS/. Russia’s defense contractors are forced to be on a tight budget due to the heavy debt burden, Deputy Prime Minister Yuri Borisov said at the Innoprom international industrial exhibition on Monday.

“The industrial sector that manufactures products is starving as it services financial institutions that produce nothing and are only meant to ensure the process of manufacturing process management and product introduction. Meanwhile, they (financial institutions) have profit multi-fold higher than manufacturers,” he emphasized.

“We have repeatedly asked President to clean the loan portfolio. Various mechanisms may be used,” Deputy PM added.

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WNU Editor: Russian companies face credit needs (and headaches) just like everyone else.

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