The debt load of AVTOVAZ is more than 100 billion rubles

The debt burden of AVTOVAZ is more than 100 billion rubles and is quite high for the financial model the company operates on. This was stated in an interview with the Rossiya 24 TV channel by the president of AVTOVAZ, Maxim Sokolov, according to whom the company seeks to minimize it and expects the adoption of state support mechanisms. "At the same time, with considering last year's high Central Bank rate, we paid more than 10 billion percent for the group. That is, this money could be directed to the development of AVTOVAZ and enterprises of the component industry, the development of new models," he said.

Earlier, Mr. Sokolov reported that VTB is the base creditor of AVTOVAZ, Sberbank is also among the creditors. According to him, the dynamics of AVTOVAZ's debts will, in particular, depend on the investment program and the speed of its implementation. The volume of investments for 2023 is planned at the level of about 40 billion rubles. The head of AVTOVAZ did not rule out that the group's debt would increase in the near future. "For example, at the end of 2022, we took an additional loan from the Industrial Development Fund of about 5 billion rubles for the development of constant velocity joints (CV joints) in order to achieve technological sovereignty in the chassis area," he said. According to the plan approved by the Board of Directors, AVTOVAZ should produce 401.6 thousand vehicles in 2023.