In March, Prime Minister Vladimir Putin ordered 25 billion rubles in state funds to be disbursed to AvtoVAZ and asked state banks to provide bridging loans of another 8 billion rubles.
In a statement on Wednesday, AvtoVAZ said it had spent 24.3 billion rubles out of the 25 billion ruble loan, having repaid the 8.04 billion ruble bridge loan, 14.02 billion rubles to suppliers and the rest as wages, taxes and loans.
It has also spent 6.17 billion rubles from the bridge loan to settle accounts with suppliers, 1.63 billion rubles to pay wages and 0.2 billion rubles to pay taxes.
It said the state loans allowed it to see overdue debts fall 75 percent, while the amount it owes suppliers fell by over 85 percent.
VTB Capital analyst Yelena Sakhnova said it would be difficult for AvtoVAZ, which owed 28 billion rubles to suppliers as of March 31, to pay out the remainder without state support.
“Despite a certain revival in July, demand for the Lada remains very low,” Sakhnova said.
Sales of AvtoVAZ’s Lada brand fell 42 percent year on year in July to 32,426 cars.
Total car sales in Russia fell 58 percent last month compared with the same period a year ago, a slightly worse showing than the 56 percent slump seen in June, according to data from the Association of European Businesses.
The backbone of the country’s rescue package for the auto industry has been a subsidy offered to banks for lowering the price of car loans.
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