Russia Allocates Additional RUB39 Billion For Car Industry-Prime-Tass

MOSCOW -(Dow Jones)- The Russian government has allocated an additional 39 billion rubles ($1.3 billion) to support the country's car industry in 2009, according to the government's stimulus plan signed by Prime Minister Vladimir Putin Friday. The government has approved allocating RUB2 billion to subsidize interest rates on three-year car loans. The subsidies will amount to two-thirds of the Central Bank of Russia's refinancing rate, which currently amounts to 11.5%. It has also allocated RUB2 billion to state-owned railroad monopoly Russian Railways to transport domestically made vehicles to Russia's Far East. In addition, the government is providing RUB1 billion to subsidize interest rates on the leasing of automotive equipment. The government is also allotting RUB12.5 billion to purchase automotive equipment for federal agencies and RUB20 billion to upgrade their automotive fleets.