Moscow guarantees $1bn of loans for Superjet 100 project

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Sukhoi's civil division has secured further state backing for its borrowing programme to finance the Superjet 100 production ramp-up.

Under the decree signed by prime minister Dmitry Medvedev, the Russian government has guaranteed repayment of up to $1 billion in term loans to the airframer.

In 2011, state-owned Vnesheconombank (VEB) made a decision to provide a $1 billion revolving credit facility for restructuring the debts of Sukhoi Civil Aircraft.

VEB governor Vladimir Dmitriev says this should "make the financial model of the company's further activities more comfortable".

The funds are also intended to continue financing the Superjet 100 project, in particular research and development work focussed on increasing the twinjet's cruising range.

With government guarantees in place, Sukhoi can draw on the credit line over the next two years and benefit from deferring the loan maturity until 1 January 2015.

The decree specifies that Sukhoi will repay the loan and interest in monthly instalments, paying off the balance within 12 years of signing the credit agreement with VEB.

Acting as Russia's national development bank, VEB is also instrumental in funding Superjet aircraft sales to Aeroflot and UTair through its designated leasing division.