NOVOSIBIRSK, August 23 (RIA Novosti) - The Russian authorities should introduce a moratorium on loan interest payments by agribusiness affected by the worst drought in decades, the President of the National Union of Grain Producers and board chairman of Siberian Agrarian Holding (SAHO) Pavel Skurikhin said on Monday.
"We are currently facing a very serious and fundamental question of cooperation with banks, as all agricultural companies have large debts," Skurikhin said.
"Our position is that in this situation it is necessary to think not only about rescheduling loan debt... but also about a certain moratorium on loan interest rate payment," he said.
Almost 25 percent of the overall grain harvest in 2010 has been spoiled by the abnormal heat wave and drought in Russia this summer, which affected 28 regions, according to preliminary assessments.
Analysts polled by RIA Novosti say losses could amount to $7-15 billion, with the most damage sustained by the country's agribusiness. Central Russia, the Volga region and southern Urals will suffer the most.
Russian Prime Minister Vladimir Putin last week ordered the government to allocate 18.4 billion rubles in 2010-2012 to subsidize interest rates on loans to farmers who suffered from the drought.
