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Samolet, facing rising debt due to slowing economic conditions, ended subsidised mortgage programs, and high interest rates, has secured a refinancing arrangement with major banks instead of government subsidies. The developer's debt had reached 703 billion roubles (USD 9.2 billion) by mid-last year. Following analysis of its financial position and measures already taken, authorities saw no financial instability risks. The refinancing program aims to lower interest costs and restructure part of the debt, helping Samolet manage the challenging monetary environment while continuing its operations.
Samolet, one of Russia's largest real estate developers, has agreed on a refinancing program with commercial banks, moving away from its earlier request for government support worth 50 billion roubles (USD 653 million). The company has been under significant financial pressure as a result of economic slowdown, the end of subsidised mortgage schemes, and elevated interest rates, all of which have impacted the construction and real estate sectors and increased debt levels. Advertisement
By the middle of last year, Samolet had accumulated debt totaling 703 billion roubles (USD 9.2 billion). After a thorough review of its finances and the debt-reduction measures already implemented, the finance ministry indicated that the company did not pose any financial instability risks. Samolet confirmed it was satisfied with the outcome of the discussions and is continuing its operations.
The developer added that through joint negotiations with major banks, a set of tools and measures were established. These will help reduce the current interest burden and refinance a portion of corporate debt, enabling the group to navigate the ongoing period of tight monetary policy more effectively. The finance ministry has not provided any immediate comment regarding the discussions.
Source Reuters
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