Analysis of support measures for strategic organizations during the pandemic

About the authors:

Svetlana E. Demidova, Cand. Sci. (Econ.), Associate Professor, Department of Public Finance, Faculty of Finance, Financial University under the Government of the Russian Federation (Moscow); demidovapsk@gmail.com

Tatyana A. Bloshenko, Dr. Sci. (Econ.), Leading Research Fellow, Center for Financial Policy, Department of Public Finance, Faculty of Finance, Financial University under the Government of the Russian Federation (Moscow)

Abstract:

The article is devoted to an overview of measures to support backbone organizations during a pandemic. In this context, the issue has not been addressed in other studies. The peculiarities of the group of backbone organizations were a significant increase in their number, in the structure the largest share falls on the industrial sector, in the regional context — on the capital region. However, the status of backbone organizations is not sufficiently substantiated. The criteria for referring to this group are controversial and, at the same time, can be ignored by the decision of the government commission. The measures of state support related to subsidizing bank loans provided to systemically important organizations, tax deferrals and other payments are being studied. The problems and risks for counterparties are indicated, due to the conditionality of the interest rate on loans. The main limitations for the use of support tools are given. We can conclude that the backbone status does not affect the composition of the support measures that a legal entity has the right to use. The advantage is that financial support is given priority. However, there is a possibility of disruption of the competitive environment as a result of this preference, as well as if the counterparty company is not subject to the moratorium on bankruptcy. It is proposed to change the approach to grouping organizations for the purposes of state support, with the allocation of sectoral priority. The article critically assesses the relevance of the proposed measures. It is proposed to diversify them through the use of refinancing and restructuring of already received concessional loans.

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