The Ministry of agriculture of the Russian Federation hopes that the reduction in the rate of Bank short-term loans for agricultural enterprises to 5% will happen from the beginning of next year, said Minister of agriculture Alexander Tkachev.

“We expect that from 1 January, 2017 will earn the preferential mechanism of crediting of agricultural producers in attracting short-term and investment credits at the rate of 5% per annum,” — said Tkachev, speaking at a meeting of the government Commission on agriculture.

Now Russian farmers direct to pay the subsidized part of the bet working capital, and then expect reimbursement from the state. The agriculture Ministry had earlier proposed to simplify this mechanism by going to the system in which subsidies for compensation of interest rates on loans to farmers will channeled directly to the agent banks.

Updated short-term lending also meant that the transition to a system in which the interest rate for agricultural producers will initially be 5% per annum. It was expected that the simplified mechanism of short-term agricultural lending start work this summer.