Transnistrian authorities to get interests from Russian financial aid

The Transnistrian farmers are indignant that the Tiraspol authorities decided to distribute Russian humanitarian aid as loans with interests, the Info-Prim Neo correspondent in the area reports. The assistance was allocated by Russia in December last year, upon the request of the Transnistrian legislature, to materially support pensioners and farmers. In order to strengthen the Transnistrian agricultural sector, Russia allocated 220.5m Russian rubles. Yet the farmers in the area complain the non-reimbursable Russian aid is distributed as credits with interest. The speaker of the Transnistrian parliament, Yevgeny Shevchuk, said the money would be directed towards the entities which would be able to contribute with own means to the development of the agriculture and to return the credits in Russian rubles within 3-5 years. The credits will be disbursed through the region’s central bank. Farmers will get the money by submitting business plans implying up to 12.25m Russian rubles, for a 5-year term. The interest will range from 6% to 8%. Local observers suppose the credits, convenient as such, as the usual interest rate is at least 17%, will rest with the large companies. First of all they mean the monopolies “Sheriff” and “Yevrostil-Agro.” Commenting on the decision of the Transnistrian Supreme Soviet, more managers of agricultural firms criticize such a manner of sharing the Russian aid. The director of the firm “Druzhba”, Daniil Matchin, says as long as the question is of humanitarian aid, it should be given to the needy and should not become a source of getting rich for someone. This way, the Russian assistance will actually contribute to back the banks. A 5% interest will yield about half a million dollars to bankers. Besides, the loans will be given only to the firms able to reimburse them, that is to the large firms, says Matchin. The chairman of the regional parliamentary committee responsible for agriculture, Yefim Koval, has said a final decision on distributing the Russian aid will be taken later. Unofficial sources suppose the distribution method is either considered in Moscow. The Muscovite weekly «Коmmersant» writes Smirnov managed to lose Moscow’s trust completely. “Smirnov has not yet been forgiven for irrationally using the financial and humanitarian aid sent in 2006, which, instead of being shared to ordinary citizens, were used to support the apparatchiks and intelligence services,” “Kommersant” writes. In 2007, Russia did not offer financial aid to Moldova’s breakaway Transnistrian area. E.N. -- 1,000,000 Russian rubles = USD41,833

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