In some cases, the government could buy into large Russian companies to support them

In some cases, the government could buy into large Russian companies to support them, First Deputy Prime Minister Igor Shuvalov told reporters following an economic conference yesterday.

He stressed that such decisions would be exceptions, and they would be debated publicly. “We have not resorted to this measure yet,” Shuvalov said, noting that this possibility could not be excluded.

Commenting on possible debt restructuring schemes for large companies, he defined the government’s position by saying that “all debts must be paid by debtors,” while at the same time admitting that many large companies were unable to repay their loans on the terms under which they received them.

Shuvalov recommended that borrowers negotiate with their creditors, presenting their financial recovery plans and the prospect of loan repayment. Companies should get access to the same loans but on new conditions, he believes.

The government is ready to help the cash-strapped borrowers. “If they need assistance in arranging meetings with lenders, we will help; if they need letters spelling out the government’s position, we will provide such letters, but it will be the position I have voiced, and not that we are prepared to forgive the debts,” Shuvalov emphasized.