Source: Xinhua
03-31-2009 10:29
Special Report: Global Financial CrisisMOSCOW, March 30 (Xinhua) -- The Russian government is considering a direct aid of over 20 billion rubles (over 590 million U.S. dollars) to the country's auto giant AvtoVAZ, Prime Minister Vladimir Putin said Monday.
A final decision on the exact amount of money will be made by the end of the day, said Putin when meeting with autoworkers at the Volga city of Togliatti, home of the famed Lada cars.
The fund will enable AvtoVAZ, Russia's leading small cars manufacturer, to make payments to suppliers and pay off some of its debts, said Putin.
"The figures discussed stand atop of 20 billion rubles," the Itar-Tass quoted him as saying, while the auto company's executives have expected 26 billion rubles (around 769 million dollars).
The Russian prime minister also promised that government agencies soon will hold bidding contests for purchasing cars based on their own needs.
Russian car market may shrink 60 percent this year as compared to the previous year, due to the plunging demand caused by the economic downturn, said Industry and Trade Minister Viktor Khristenko on the same day in Togliatti.
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