MSMEs Face 7.7 Billion Ruble Debt Crisis from Russian State-Owned Companies
The MSME sector has seen growth as a supplier to united states companies in Russia, following the exit of foreign businesses. However, a significant debt issue has arisen, with usa companies owing MSMEs over 7.7 billion rubles. The MSME Corporation is taking steps to address this, including proposing debt consideration in management evaluations and drafting amendments to include debt absence in key performance indicators (KPIs) for us states company heads.
Tatyana Sizova, Moscow's ombudsman for entrepreneurs' rights, has warned against state farm insurance companies becoming the 'last straw' in the debt situation. Dmitry Panov of 'Delovaya Rossiya' reports an increase in complaints about deliberate payment delays by these companies. The MSME Corporation has received around 840 complaints, totaling 7.7 billion rubles in confirmed debt.
The MSME Corporation is preparing a draft amendment to include debt absence to MSME suppliers in the KPIs of state farm company heads. This move aims to encourage timely payments and reduce the debt burden on MSMEs. The project is expected to be sent to the White House next week to minimize non-payment cases. However, the real figures may be significantly higher, with the total volume of purchases by statefarm companies from MSMEs around 8 trillion rubles per year.
The MSME sector's growth as a supplier to states companies has brought both opportunities and challenges. While the MSME Corporation works to address the debt issue, it is crucial for the government to also support state farm login to enable them to pay SMEs promptly, ensuring a healthy business environment for MSMEs to thrive.
